**3. Disadvantages in the established practice of implementing large-scale projects**

In case of production and technological problems, successful solution, as well as increasing the improvement of design and engineering quality, the bottleneck in the complex engineering facilities construction is the problem of managing solutions' control and rational envisioning [10].

A rational solution is to minimize the use of resources while the system performs its target function. Let us briefly explain this definition. The intention of any production system is the achievement of certain state parameters, which are called the goal and appear as the result of the target achieving process. During the implementation of the target function, the system is affected by internal and external influences that angle the theoretical path of the system in the phase field of variables and do not allow the system to achieve target parameters. The ideology of any management system is to parry the negative results of external and internal influences in order to restore the desired trajectory of system's movement toward the target. The solution to this problem develops a mechanism that is capable of executing the decisionmaking algorithm, which is shown in **Figure 2**.

The nature and structure of the construction work determine the organization structure of the facility. A special feature of the modern construction process organization is the change in the composition of the functional blocks and their interconnection that depends on the specific phase of the project's life cycle. Let us illustrate this with the example from scientific research [9].

The interaction of the functional blocks in the design phase is described by the orgraph "a," while during the preparation for construction and installation works (CIW)—by the orgraph "b," and the actual construction—by the orgraph "c" (**Figure 3**).

We have already drawn attention to the fact that the nature and features of the planned work determine the construction process' organization structure. In fact, the forming of the construction project's organizational structure begins with the predesign or design works on the formation of design specifications and estimates. If works are carried out in the construction's full-life cycle, then this should be preceded by the structure formation of the "zero" implementation phase, when the project operates not with the composition of the construction works execution but with the development of target characteristics and project indicators.

Currently, the implementation of large-scale construction projects involves a great number of organizations. However, the design documentation does not define the project organizational architecture, let alone the mutual interaction during the project implementation. The only thing that can be noted is that modern ICP requires the obligatory presence of the construction management plan (CMP) and the construction execution plan (CEP) in the list of project documentation. However none of them contain any directions for creation of any organizational structure. It is assumed that it exists by default. Indeed, in the modern project implementation practice, the project organizational structure is not specifically formed, but created on the basis of existing arrangements of past experience and all that irrelevant to effective organizational structures.

In addition, CMP focuses on the technological aspects of construction installation works. Its structure includes the layout of construction site, the manpower, and machinery requirements computation, progress schedule, and so on. All components of the organizational design are presented in CMP, but it describes only one phase of the life cycle—construction and installation works (CIW), and even during them, there are no clear mutual interactions between contractors and their units on construction site of facility. To some extent, this can be tolerated in case of building a simple standard construction, where the only one phase is realized: construction and installation works, where the functions of the developer are delegated to the general contractor by the customer, who, in fact, forms the organizational structure according to its own understanding and takes into account its own interests.

For creation of a highly effective organizational structure of the project, it is absolutely necessary to consider all the phases of the project life cycle and the full range of work that needs to

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An example of the implementation of the complex engineering turnkey facility construction is indicative. Within it, the project goes through all stages of the life cycle and the question of

Generally, new projects are implemented in the existing "parent" structure of the company, which implements a large number of projects that are currently in different stages of the

the organizational structure formation and adaptation is very crucial.

**Figure 2.** Decision-making algorithm in reflex-adaptive organizational structure. Source: own.

be done to create the project product.

life cycle.

To adopt such practice in a large-scale construction project even within a single phase of construction and installation works means to accept all confusion, irresponsibility, vanity, and system mistakes that will lead to time-consuming delays and can significantly increase construction cost.

Reflex-Adaptive Organizational Structure in the Implementation of Large-Scale Projects http://dx.doi.org/10.5772/intechopen.78627 113

ideology of any management system is to parry the negative results of external and internal influences in order to restore the desired trajectory of system's movement toward the target. The solution to this problem develops a mechanism that is capable of executing the decision-

The nature and structure of the construction work determine the organization structure of the facility. A special feature of the modern construction process organization is the change in the composition of the functional blocks and their interconnection that depends on the specific phase of the project's life cycle. Let us illustrate this with the example from scientific

The interaction of the functional blocks in the design phase is described by the orgraph "a," while during the preparation for construction and installation works (CIW)—by the orgraph

We have already drawn attention to the fact that the nature and features of the planned work determine the construction process' organization structure. In fact, the forming of the construction project's organizational structure begins with the predesign or design works on the formation of design specifications and estimates. If works are carried out in the construction's full-life cycle, then this should be preceded by the structure formation of the "zero" implementation phase, when the project operates not with the composition of the construction works execution but with the development of target characteristics and project indicators. Currently, the implementation of large-scale construction projects involves a great number of organizations. However, the design documentation does not define the project organizational architecture, let alone the mutual interaction during the project implementation. The only thing that can be noted is that modern ICP requires the obligatory presence of the construction management plan (CMP) and the construction execution plan (CEP) in the list of project documentation. However none of them contain any directions for creation of any organizational structure. It is assumed that it exists by default. Indeed, in the modern project implementation practice, the project organizational structure is not specifically formed, but created on the basis of existing arrangements of past experience and all that irrelevant to effective

In addition, CMP focuses on the technological aspects of construction installation works. Its structure includes the layout of construction site, the manpower, and machinery requirements computation, progress schedule, and so on. All components of the organizational design are presented in CMP, but it describes only one phase of the life cycle—construction and installation works (CIW), and even during them, there are no clear mutual interactions between contractors and their units on construction site of facility. To some extent, this can be tolerated in case of building a simple standard construction, where the only one phase is realized: construction and installation works, where the functions of the developer are delegated to the general contractor by the customer, who, in fact, forms the organizational structure according

To adopt such practice in a large-scale construction project even within a single phase of construction and installation works means to accept all confusion, irresponsibility, vanity, and system mistakes that will lead to time-consuming delays and can significantly increase

making algorithm, which is shown in **Figure 2**.

"b," and the actual construction—by the orgraph "c" (**Figure 3**).

to its own understanding and takes into account its own interests.

research [9].

112 Organizational Culture

organizational structures.

construction cost.

**Figure 2.** Decision-making algorithm in reflex-adaptive organizational structure. Source: own.

For creation of a highly effective organizational structure of the project, it is absolutely necessary to consider all the phases of the project life cycle and the full range of work that needs to be done to create the project product.

An example of the implementation of the complex engineering turnkey facility construction is indicative. Within it, the project goes through all stages of the life cycle and the question of the organizational structure formation and adaptation is very crucial.

Generally, new projects are implemented in the existing "parent" structure of the company, which implements a large number of projects that are currently in different stages of the life cycle.

This chapter helps in closing the gap by using the project matrix concept, which is based on

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By the term "project matrix," we shall basically mean a scheme of directive planning and management of functional blocks activity that have a form of oriented graph and based on project key events, their structure, and interrelations. The project matrix does not resolve itself to proximity tables of the network orgraph or assembly of Gantt bar charts. The project matrix is an oriented graph, in which the vertices display events in the project life cycle, and the arcs the logical link of these events and their sequence. The special feature of this orgraph is the lack of resource conditions in achieving certain key events. It is a model of functional blocks' logical links at all stages of the project life cycle that uniquely determine its organizational structure. Essentially, project matrix is a graphical representation of the program, which is implemented by the management system in order to provide the appropriate organizational structure of each phase of the investment and construction project. Construction works range separation into technological and logical components thus allow emphasizing the questions of construction participants' organizational interaction into optimal organizational structure

Properties of the project matrix can include all properties of network models [11]. In our case, the most important are network structures' possibilities of "scaling" and "merging." The matrix can be single- or multilevel depending on the amount project scope. The matrix levels are accordingly correlated with construction management and execution plans. Key matrix events of different levels have identical characteristics and appear as control points through

The matrix is an execution document. It is derived from an order (the employer's or general contractor requirements), coordinated with the executors and approved by project administration. On the basis of the matrix, which has the program status after the approval, lowlevel documentation is elaborated. This work is transferred by the contractor to the project functional blocks. In our considerations a new concept has emerged—a key event. Let us distinguish it in details. The construction process consists of work actions, which ultimately lead to certain events. For example, work, which is carried out in accordance with the technical documentation for ground excavation, leads to the construction of an unlined canal. The work of a bricklaying crew leads to the fact of creating a building or part of it. This is also an event. And so on. The specification of this process allows us to locate all events that provide project target achievement, which is also regarded as an event. From a manufacturing point of view, an event considered as a completion of some work or part of it, which is defined by technical documentation, leads to a concrete material result. From the system point of view, considering the network model of work organization, the event represents orgraph vertex, which describes works' sequence and interrelations, and, therefore, the structure of this project implementation phase. The main difference of events is the size of incoming connections order. The event with the maximum incoming order will be defined

**4. Matrix of project key events is the modern paradigm** 

that fully accommodates nature, volumes, and features of the construction.

checking the matrix and program compiling correctness.

the methodology of its formation.

**of organizational structure formation**

**Figure 3.** Orgraphs of project's functional blocks at different stages of life cycle. Source: own.

It is not just the process of forming a static organizational structure that is too complex, but the planning of its transformation process during the projects' progression from stage to stage and maintenance of financial resources and required number of labor and materials.

In organizational structure formation, the main problem of resources availability estimation is modern organizational development of engineering and construction companies.

The work on the staff requirement number estimation and planning is developing, but not intensively enough, because it covers a very narrow range of directions and functional blocks of construction projects. Obviously, for the implementation of construction and installation works along with the commissioning works, there are calculations of labor force requirement that are carried out, also number of project designer is preplanned and calculated but that is all. However, this is not nearly enough for the implementation of a reflex-adaptive organizational structure. Comprehensive approach to the planning is essential, beginning with a detailed elaboration of the work scope that should be performed at each phase, and ending with all types of support for their implementation.

For a large-scale project, especially if there are several of them and they are implemented in parallel, this is a rather topical and complex issue. Experience has proven that it is inefficient and disadvantageous to deal with this issue during the project implementation, neither from the cost and quality terms point of view, nor from obtaining effective experience in the construction projects implementation and management process.

Inattention to the project organizational structure formation and to its management at all stages of the life cycle is a serious omission in achieving goals of the investment and construction project.

This chapter helps in closing the gap by using the project matrix concept, which is based on the methodology of its formation.

## **4. Matrix of project key events is the modern paradigm of organizational structure formation**

It is not just the process of forming a static organizational structure that is too complex, but the planning of its transformation process during the projects' progression from stage to stage

In organizational structure formation, the main problem of resources availability estimation is

The work on the staff requirement number estimation and planning is developing, but not intensively enough, because it covers a very narrow range of directions and functional blocks of construction projects. Obviously, for the implementation of construction and installation works along with the commissioning works, there are calculations of labor force requirement that are carried out, also number of project designer is preplanned and calculated but that is all. However, this is not nearly enough for the implementation of a reflex-adaptive organizational structure. Comprehensive approach to the planning is essential, beginning with a detailed elaboration of the work scope that should be performed at each phase, and ending

For a large-scale project, especially if there are several of them and they are implemented in parallel, this is a rather topical and complex issue. Experience has proven that it is inefficient and disadvantageous to deal with this issue during the project implementation, neither from the cost and quality terms point of view, nor from obtaining effective experience in the con-

Inattention to the project organizational structure formation and to its management at all stages of the life cycle is a serious omission in achieving goals of the investment and construc-

and maintenance of financial resources and required number of labor and materials.

**Figure 3.** Orgraphs of project's functional blocks at different stages of life cycle. Source: own.

modern organizational development of engineering and construction companies.

with all types of support for their implementation.

tion project.

114 Organizational Culture

struction projects implementation and management process.

By the term "project matrix," we shall basically mean a scheme of directive planning and management of functional blocks activity that have a form of oriented graph and based on project key events, their structure, and interrelations. The project matrix does not resolve itself to proximity tables of the network orgraph or assembly of Gantt bar charts. The project matrix is an oriented graph, in which the vertices display events in the project life cycle, and the arcs the logical link of these events and their sequence. The special feature of this orgraph is the lack of resource conditions in achieving certain key events. It is a model of functional blocks' logical links at all stages of the project life cycle that uniquely determine its organizational structure. Essentially, project matrix is a graphical representation of the program, which is implemented by the management system in order to provide the appropriate organizational structure of each phase of the investment and construction project. Construction works range separation into technological and logical components thus allow emphasizing the questions of construction participants' organizational interaction into optimal organizational structure that fully accommodates nature, volumes, and features of the construction.

Properties of the project matrix can include all properties of network models [11]. In our case, the most important are network structures' possibilities of "scaling" and "merging." The matrix can be single- or multilevel depending on the amount project scope. The matrix levels are accordingly correlated with construction management and execution plans. Key matrix events of different levels have identical characteristics and appear as control points through checking the matrix and program compiling correctness.

The matrix is an execution document. It is derived from an order (the employer's or general contractor requirements), coordinated with the executors and approved by project administration. On the basis of the matrix, which has the program status after the approval, lowlevel documentation is elaborated. This work is transferred by the contractor to the project functional blocks. In our considerations a new concept has emerged—a key event. Let us distinguish it in details. The construction process consists of work actions, which ultimately lead to certain events. For example, work, which is carried out in accordance with the technical documentation for ground excavation, leads to the construction of an unlined canal. The work of a bricklaying crew leads to the fact of creating a building or part of it. This is also an event. And so on. The specification of this process allows us to locate all events that provide project target achievement, which is also regarded as an event. From a manufacturing point of view, an event considered as a completion of some work or part of it, which is defined by technical documentation, leads to a concrete material result. From the system point of view, considering the network model of work organization, the event represents orgraph vertex, which describes works' sequence and interrelations, and, therefore, the structure of this project implementation phase. The main difference of events is the size of incoming connections order. The event with the maximum incoming order will be defined as a key event. A key event or a series of them completes the project implementation phase or stage, forms a new organizational structure, or alters the previous one into the structure of a new construction phase.

As an example, we consider the formation of a matrix for a single-phase project (**Figure 4**).

This process is much more complicated for projects with a full-life cycle.

The presented flow chart requires some explanation (**Figure 5**). Firstly, let us emphasize again that the design of organizational structure is a similar stage to an object design or its systems. Therefore, a specialist or a group of specialists called system designers should handle this work on the analogy of IT systems with software engineers and system programmers [12]. Organizational structure formation of a large-scale construction requires greater theoretical skills and sufficient practical experience from developers to comprehend construction logic wholly, to separate the technological process properly into operational and logical links and to prepare clear and understandable construction documentation for the executives. Further, it is necessary to clarify that the main support complex in the project matrix formation is not works, but events. The matrix reflects the implementation of events through the execution of certain works. Therefore, all the attention of project designers should be focused on the correct events sequence and their logical relationship. Matrices of the same project can be formed on different scales, but it more effectual to develop a matrix from a large scale to extremely small one with a detail of events' specification.

As you can see, the matrix of ICP key events determines its organizational structure, but does not define logistics, labor movement, volumes, and period of construction. It is necessary to supplement the key events matrix with comprehensive information about requirements for achieving each key event in order to form design and estimate's real directive documents that define a detailed construction program. This task should be solved by system designers

combined with the project functional blocks, i.e., by specialized contracting organizations that should determine each orgraph arc of the "project matrix" by a description of work, which performs between the previous event and the developing one. Work description is carried out according to certain rules that allow operating this information. For that purpose, the operator card is created, which has its own address, where are attributed all types of work, performance periods, list, and amount of resources, that are necessary for work performance. In fact, the entire amount of construction, erection, and finishing works should be divided in elementary operations or by the necessary level of detalization. This is fairly large

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**Figure 5.** Flow chart of works on formation the matrix of ICP key events. Source: own.

**Figure 4.** Multilevel matrix of project key events. Source: own.

Reflex-Adaptive Organizational Structure in the Implementation of Large-Scale Projects http://dx.doi.org/10.5772/intechopen.78627 117

**Figure 5.** Flow chart of works on formation the matrix of ICP key events. Source: own.

as a key event. A key event or a series of them completes the project implementation phase or stage, forms a new organizational structure, or alters the previous one into the structure

As an example, we consider the formation of a matrix for a single-phase project (**Figure 4**).

The presented flow chart requires some explanation (**Figure 5**). Firstly, let us emphasize again that the design of organizational structure is a similar stage to an object design or its systems. Therefore, a specialist or a group of specialists called system designers should handle this work on the analogy of IT systems with software engineers and system programmers [12]. Organizational structure formation of a large-scale construction requires greater theoretical skills and sufficient practical experience from developers to comprehend construction logic wholly, to separate the technological process properly into operational and logical links and to prepare clear and understandable construction documentation for the executives. Further, it is necessary to clarify that the main support complex in the project matrix formation is not works, but events. The matrix reflects the implementation of events through the execution of certain works. Therefore, all the attention of project designers should be focused on the correct events sequence and their logical relationship. Matrices of the same project can be formed on different scales, but it more effectual to develop a matrix from a large scale to extremely small one with a detail of events' specification. As you can see, the matrix of ICP key events determines its organizational structure, but does not define logistics, labor movement, volumes, and period of construction. It is necessary to supplement the key events matrix with comprehensive information about requirements for achieving each key event in order to form design and estimate's real directive documents that define a detailed construction program. This task should be solved by system designers

This process is much more complicated for projects with a full-life cycle.

of a new construction phase.

116 Organizational Culture

**Figure 4.** Multilevel matrix of project key events. Source: own.

combined with the project functional blocks, i.e., by specialized contracting organizations that should determine each orgraph arc of the "project matrix" by a description of work, which performs between the previous event and the developing one. Work description is carried out according to certain rules that allow operating this information. For that purpose, the operator card is created, which has its own address, where are attributed all types of work, performance periods, list, and amount of resources, that are necessary for work performance. In fact, the entire amount of construction, erection, and finishing works should be divided in elementary operations or by the necessary level of detalization. This is fairly large amount of design work that requires a certain amount of time. By using visual programming methods, it is possible to speed the work of this stage of documentation development. With these methods, developers do not demand a high qualification of programmers to produce technical documentation. The methodology of ICP key events matrix's actualization process is in considering the matrix as a polygonal network system—an orgraph, where the network vertices are events that determine the state of the project, and the arcs define the conditions for the project transition from one state to another, i.e., they are transition operators. In physical representation, the transition is a work or a set of works, which allows transitioning from one state to another through its implementation. Therefore, the transition operator "*ω<sup>n</sup>* " should contain comprehensive information about the work and the execution conditions. The following form determines this requirement:

$$
\omega\_n = \sum\_{\nu=1}^{\nu \le n} A\_{\nu} \cdot \sum\_{\nu=1}^{\nu \le n} R\_{\nu} \cdot \sum\_{\nu=1}^{\nu \le n} G\_{\nu} \cdot T\_{ct} \tag{3}
$$

**5. Conclusions and recommendations**

each stage of construction.

construction project.

implementation program.

of the matrix consists only of key events.

and acquire foundational skills in programming.

stages of the construction documentation general development.

site, what makes processes of production organization uncontrolled.

Limiting the factors under the conditions of large-scale construction, there are unresolved issues of creating effective construction organizational structures that retard economic and financial progress. Current practice of large-scale construction projects is lacking the comprehension of organizational structure formation process, which is goal-oriented on construction at minimum expense. The absence of a convenient model of construction organizational structure does not provide design's variability of main contractors' interaction on the construction

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Developers of high-efficient organizational structures focus their attention on cybernetic type of the reflex-adaptive organizational structure, which consists of management and executive subsystems that are covered with feedback. This structure is able of responding to changes in the external and internal environments and can form an optimal organizational structure for

An effective method of forming the construction project's organizational structure is the method of production process analysis and synthesis. According to this method, construction process is divided into organizational and technological components, what allows to develop organizational structure from production and logical connections between events, works, and executors. Accordingly, this structure is most relevant to the current phase of the large-scale

The investment and construction project matrix is a network model of production and logical links array of events, which implementation leads to the achievement of construction's target goal. In order to lead to certain events, the matrix defines organizational and production relations of project executors and the sequence of work performance. The project matrix can be represented both in polygonal form of an orgraph, or in a quasialgebroidal notation. The orgraph of the project matrix defines the events by its vertices, and goal-achieving works by its arcs. The digitized vertices and arcs of the matrix orgraph are the reference point or the ICP

Specification and scaling of the project matrix is carried out on the basis of the "key event" concept of the project. This reflects on all network schemes, regardless of the model's scale and determines the beginning or completion of certain construction stages. The highest level

In order to form a highly effective ICP organizational structure, it is necessary to execute a complex of works on the system design of the project's organizational structure as one of the

Lack of system design specialists requires the measures in training of system designers of construction facilities' organizational structures. In addition, construction managers of various levels are also required to be trained. This future specialists need to gain basic IT knowledge

where *А* is the work that ensures the achievement of a specific event, *R* is the resource as a condition of relevant work performance, *G* is the labor contribution that characterizes each works, and *Тct* is the critical execution time of transition from one event to another.

From this follows the most important operator property: the transition operator "*ω<sup>n</sup>* " from the event "*i*" to the event "*j*" equals sum of any decomposition level operators in the same limits, i.e.,

$$
\omega\_n = \sum\_{\nu=l}^{n \cdot l} \omega\_n \tag{4}
$$

This property allows switching from low-level operators to high-level ones, i.e., performing operators' connection.

A few words about the visualization problem of the large-scale construction network model. There are limitations of man's abilities in perception of a large information amount. It is even more difficult to identify a trend or its characteristic change from the general data flow quickly enough. The main thing is lost in a large flow of information. By traditional assumption of work construction and executive structures in the form of linear or network charts, they have significant limitations of detalization level of the construction processes. If we increase the chart scale, it becomes unreadable due to the large number of particular elements. The solution of this problem is in applying highly developed visualization informational systems. The introduced construction execution plan can easily be transformed into a quasialgebroidal form, which is easily acceptive by computer technology. By designating corresponding events in a certain way, it is always possible to withdraw from the computer's memory any phase in various detalization levels as an addition to the main, enlarged project matrix.

Thus, it is possible to increase productivity and construction reliability by using visual programming and the methodology of forming the ICP organizational structures on basis of key events matrix and automated calculation method appliance.

### **5. Conclusions and recommendations**

amount of design work that requires a certain amount of time. By using visual programming methods, it is possible to speed the work of this stage of documentation development. With these methods, developers do not demand a high qualification of programmers to produce technical documentation. The methodology of ICP key events matrix's actualization process is in considering the matrix as a polygonal network system—an orgraph, where the network vertices are events that determine the state of the project, and the arcs define the conditions for the project transition from one state to another, i.e., they are transition operators. In physical representation, the transition is a work or a set of works, which allows transitioning from one

state to another through its implementation. Therefore, the transition operator "*ω<sup>n</sup>*

*n*=1 *n*=*m An* ; ∑ *n*=1 *n*=*m Rn* ; ∑ *n*=1 *n*=*m Gn*

works, and *Тct* is the critical execution time of transition from one event to another. From this follows the most important operator property: the transition operator "*ω<sup>n</sup>*

ing form determines this requirement:

i.e.,

118 Organizational Culture

operators' connection.

*ω<sup>n</sup>* = ∑

*ω<sup>n</sup>* = ∑

contain comprehensive information about the work and the execution conditions. The follow-

where *А* is the work that ensures the achievement of a specific event, *R* is the resource as a condition of relevant work performance, *G* is the labor contribution that characterizes each

event "*i*" to the event "*j*" equals sum of any decomposition level operators in the same limits,

*n*=*i n*=*j*

This property allows switching from low-level operators to high-level ones, i.e., performing

A few words about the visualization problem of the large-scale construction network model. There are limitations of man's abilities in perception of a large information amount. It is even more difficult to identify a trend or its characteristic change from the general data flow quickly enough. The main thing is lost in a large flow of information. By traditional assumption of work construction and executive structures in the form of linear or network charts, they have significant limitations of detalization level of the construction processes. If we increase the chart scale, it becomes unreadable due to the large number of particular elements. The solution of this problem is in applying highly developed visualization informational systems. The introduced construction execution plan can easily be transformed into a quasialgebroidal form, which is easily acceptive by computer technology. By designating corresponding events in a certain way, it is always possible to withdraw from the computer's memory any phase in

Thus, it is possible to increase productivity and construction reliability by using visual programming and the methodology of forming the ICP organizational structures on basis of key

various detalization levels as an addition to the main, enlarged project matrix.

events matrix and automated calculation method appliance.

" should

" from the

; *Tct* (3)

*ω<sup>n</sup>* (4)

Limiting the factors under the conditions of large-scale construction, there are unresolved issues of creating effective construction organizational structures that retard economic and financial progress. Current practice of large-scale construction projects is lacking the comprehension of organizational structure formation process, which is goal-oriented on construction at minimum expense. The absence of a convenient model of construction organizational structure does not provide design's variability of main contractors' interaction on the construction site, what makes processes of production organization uncontrolled.

Developers of high-efficient organizational structures focus their attention on cybernetic type of the reflex-adaptive organizational structure, which consists of management and executive subsystems that are covered with feedback. This structure is able of responding to changes in the external and internal environments and can form an optimal organizational structure for each stage of construction.

An effective method of forming the construction project's organizational structure is the method of production process analysis and synthesis. According to this method, construction process is divided into organizational and technological components, what allows to develop organizational structure from production and logical connections between events, works, and executors. Accordingly, this structure is most relevant to the current phase of the large-scale construction project.

The investment and construction project matrix is a network model of production and logical links array of events, which implementation leads to the achievement of construction's target goal. In order to lead to certain events, the matrix defines organizational and production relations of project executors and the sequence of work performance. The project matrix can be represented both in polygonal form of an orgraph, or in a quasialgebroidal notation. The orgraph of the project matrix defines the events by its vertices, and goal-achieving works by its arcs. The digitized vertices and arcs of the matrix orgraph are the reference point or the ICP implementation program.

Specification and scaling of the project matrix is carried out on the basis of the "key event" concept of the project. This reflects on all network schemes, regardless of the model's scale and determines the beginning or completion of certain construction stages. The highest level of the matrix consists only of key events.

In order to form a highly effective ICP organizational structure, it is necessary to execute a complex of works on the system design of the project's organizational structure as one of the stages of the construction documentation general development.

Lack of system design specialists requires the measures in training of system designers of construction facilities' organizational structures. In addition, construction managers of various levels are also required to be trained. This future specialists need to gain basic IT knowledge and acquire foundational skills in programming.

The development strategy of construction management processes requires mandatory infusion of computer information processing, decision-making automation, the creation and implementation of new digital information display systems, and the widespread use of digital media for construction documentation. The solution of these problems opens a new direction for the construction complex development—that is the construction informatization.

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2013

Journal. 2016;**9**:61-65

It is advisable to conduct further research on the use of a reflex-adaptive organizational structure in the implementation of large-scale projects toward financial and economic efficiency. In view of certain additional costs for the development of a detailed model for the implementation of a construction project, it is necessary to determine the minimum volume of construction production in monetary terms at which the costs of organizational design will be an acceptable value.

It is also desirable to consider the unification of requirements for organizational design, the creation of data banks for standard operations and construction products, the definition of the nomenclature of technical documentation for organizational design.

### **Author details**

Andrey Morozenko

Address all correspondence to: morozenkoaa@mgsu.ru

Moscow State University of Civil Engineering, Moscow, Russia

### **References**


[6] Volkov AA, Sborshikov SB, Hripko TV. Formalized description of proposal evaluation procedures for applicants (the organizer of the construction and contracting companies) at an engineering control scheme. Vestnik MGSU. 2016;**10**:105-111

The development strategy of construction management processes requires mandatory infusion of computer information processing, decision-making automation, the creation and implementation of new digital information display systems, and the widespread use of digital media for construction documentation. The solution of these problems opens a new direction

It is advisable to conduct further research on the use of a reflex-adaptive organizational structure in the implementation of large-scale projects toward financial and economic efficiency. In view of certain additional costs for the development of a detailed model for the implementation of a construction project, it is necessary to determine the minimum volume of construction production in monetary terms at which the costs of organizational design will be an

It is also desirable to consider the unification of requirements for organizational design, the creation of data banks for standard operations and construction products, the definition of the

[1] Mao P, Li S, Ye K, Cai H. A field theory based model for identifying the effect of organizational structure on the formation of organizational culture in construction projects. KSCE Journal of Civil Engineering. 2017;**1**(1):45-53. DOI: 10.1007/s12205-016-1233-7 [2] Zheglova NV. Classification of the main approaches to the assessment of economic reliability of industrial enterprises. Russian journal of entrepreneurship. 2016;**16**(9):1289-1296.

[3] Vveinhardt J, Andriukaitiene R. Model of establishment of the level of management culture for managerial decision making with the aim of implementing corporate social

[4] Zhavnerov PB, Ginzburg AV. Problems increase efficiency technology reliability of construction organizations. Natural and Technical Sciences Journal. 2015;**6**(84):273-275 [5] Morozenko AA. Reflex-adaptive organizational structure of investment construction project. International Journal of Applied Engineering Research. 2015;**10**(21):41831-41835

responsibility. Transformations in Business and Economics. 2016;**15**(2B):615-629

nomenclature of technical documentation for organizational design.

Address all correspondence to: morozenkoaa@mgsu.ru

Moscow State University of Civil Engineering, Moscow, Russia

for the construction complex development—that is the construction informatization.

acceptable value.

120 Organizational Culture

**Author details**

Andrey Morozenko

**References**

DOI: 10.18334/rp.16.9.217


**Chapter 7**

**Provisional chapter**

**Leadership Competencies Affecting Projects in**

**Leadership Competencies Affecting Projects in** 

DOI: 10.5772/intechopen.80781

Leadership and organizational culture are linked to project performance. The culture of the organization exerts an influence on the leader and shapes the actions and competencies of the leader with the passage of time. For last few decades, project management has extensively been involved in management of projects but still projects are not guaranteed to be successful in various organizational environments. There are certain factors affecting management of projects in different situations where the competence of project leadership is one of the key factors. This chapter employed different keywords and methods for selection of articles synthesizing findings and research gaps of earlier studies. This chapter offers certain limitations and future directions for researchers. The outcomes of this chapter are expected to advance the body of knowledge and help the practitioners in

**Keywords:** leadership, competencies, project manager, organizational culture

Early management and leadership studies viewed the organization as a gateway to leadership [1] and in many cases both the terms had been used interchangeably [2, 3]. However, the contemporary literature considers the two concepts different from each other, though with some overlapping boundaries. Leadership is a social relationship where people allow individuals to influence toward organizational change. Leaders have a vision that they can communicate and execute by guiding people into a positive relationship enabling change and growth in organizations. Leadership is process to achieve a common goal where an individual influences a group of individuals. Leadership encourages discussion and debate to guide the

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

the field of leadership and project management.

http://dx.doi.org/10.5772/intechopen.80781

**Organization**

**Abstract**

**1. Introduction**

**Organization**

Riaz Ahmed

Riaz Ahmed

#### **Leadership Competencies Affecting Projects in Organization Leadership Competencies Affecting Projects in Organization**

DOI: 10.5772/intechopen.80781

#### Riaz Ahmed Riaz Ahmed

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.80781

#### **Abstract**

Leadership and organizational culture are linked to project performance. The culture of the organization exerts an influence on the leader and shapes the actions and competencies of the leader with the passage of time. For last few decades, project management has extensively been involved in management of projects but still projects are not guaranteed to be successful in various organizational environments. There are certain factors affecting management of projects in different situations where the competence of project leadership is one of the key factors. This chapter employed different keywords and methods for selection of articles synthesizing findings and research gaps of earlier studies. This chapter offers certain limitations and future directions for researchers. The outcomes of this chapter are expected to advance the body of knowledge and help the practitioners in the field of leadership and project management.

**Keywords:** leadership, competencies, project manager, organizational culture

### **1. Introduction**

Early management and leadership studies viewed the organization as a gateway to leadership [1] and in many cases both the terms had been used interchangeably [2, 3]. However, the contemporary literature considers the two concepts different from each other, though with some overlapping boundaries. Leadership is a social relationship where people allow individuals to influence toward organizational change. Leaders have a vision that they can communicate and execute by guiding people into a positive relationship enabling change and growth in organizations. Leadership is process to achieve a common goal where an individual influences a group of individuals. Leadership encourages discussion and debate to guide the

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

individuals in a working environment whereas management involves directing people to get from one point to another, using a known set of competencies [4]. The competence of project manager as leader has been recognized in literature [5] and one of the key reasons for failure of project is lack of leadership competence [6].

Competence is a quality or state of ability, effectiveness, sufficiency, or success [7]. However, a disagreement exists over the spellings of the term and two words, competency and competence, which are used with slightly different notion [8]. Competency is related to effective or superior performance in a job which is an underlying characteristic of an individual [9, 10]. Competencies are expressed as the behaviors that an individual needs to demonstrate to perform a job in different organization culture [10, 11]. On the other hand, competences are related to activities in an occupation which are expressed as minimum standards of competent performance [11]. These two concepts can be taken as complementary [8].

The purpose of this chapter is to explore earlier studies on project manager's leadership competencies to synthesize their key findings and future directions for the researchers. A few literature review studies focused on identifying personality and leadership style of the project manager as a success factor [12] and exploring how performance of leadership in project management determines project outcomes [3]. This chapter was guided by the following research questions: (a) What are key leadership competencies explored in literature? (b) What are the key findings of studies on project manager's leadership competencies? and (c) What are future directions suggested by earlier research studies?

### **2. Literature review**

### **2.1. Leadership competencies**

The project manager's role has changed from directing or managing to leading and therefore, a project manager needs to have requisite leadership competencies and skills [57]. Project management studies have highlighted the significance of project manager's leadership competencies in achieving project success [13, 58] and therefore, the researcher has identified a number of leadership competencies required for a project manager. Leadership competencies in project management literature have been classified into three main categories including intellectual competencies (IQ), managerial competencies and emotional competencies by different researchers [12, 14–17].

### *2.1.1. Intellectual competencies (IQ)*

The intellectual competencies refer to intelligence, ability of understanding the work, performing problem solving and cognitive activities such as connecting and applying relevant concepts, systematic thinking and recognizing patterns [15, 17]. Accordingly, three types of intellectual competencies identified in the literature [12, 18], are presented in **Table 1**.

them to attain excellence and quality in their performance, looking for ways to improve production and standards. According to the literature, managerial competencies have dimen-

Achieving A leader must involve significant risks as opportunity to get advantage and make decision.

It relates to collection of appropriate information from an array of resources, investigation of facts, determining merits and demerits, concrete assessment and decision making and

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This refers to innovation and imagination of a leader who has a clear vision of future course, prioritizes work accordingly and anticipates the implications of changes on implementation of

a broader spectrum of relationships, strikes a balance between near-term and long-term considerations, discovers opportunities and threats, pays attention to requirements of

and effectively. Moreover, it also involves establishing clear objectives; converting long-term goals into action plans; monitoring and evaluating staff's work regularly and

It requires a leader to be a lively and enthusiastic communicator who engages others and wins support. It also includes clear communication of instructions and vision to staff. Further, these communications are tailored to the audience's interests and focus. In addition, leader's communication style inspires staff and audiences and conveys

challenging and demanding tasks. It encourages them to solve problems; produce innovative ideas and proposals; and develop their broader vision. Empowering also means encouraging a critical faculty and a broad perspective, as well as encouraging the

tasks and roles, encourages them to do so. Therefore, a leader develops their competencies; invests time and effort in coaching them so they contribute effectively and develop themselves; and identifies new tasks and roles to develop them. The leader believes that critical feedback and challenge are important and ensures direct reports have adequate

The core business issues and their likely impact on success of any project or organization are considered by the leader while making futuristic decisions. The leaders prefer to choose such activities that contribute toward the organization and its performance. Further, a leader shows an unwavering determination to achieve objectives and implement decisions.

understanding the effects of assumptions made [19–21].

Strategic perspective It involves a broader view of issues and their implications in which a leader investigates

stakeholders and realizes the effects of external factors [19–21].

Resource management This relates to planning ahead, organizing the resources and coordinating them efficiently

Empowering Empowering means giving the staff autonomy and encouraging them to take on personally

challenging of existing practices, assumptions and policies. Developing It requires a leader to believe that others have potential to take on ever more-demanding

effectively; and giving honest feedback.

approachability and accessibility.

his or her vision [19–21].

The person's ability to perceive, identify and manage his or her emotions as well as understanding and regulating those of others are the basis for the emotional competencies. A certain level

sions which are presented in **Table 2**.

**Table 2.** Summary on types of managerial competencies.

support.

*2.1.3. Emotional competencies*

Source: developed based on [19–21].

Critical analysis and

Source: developed based on [19–21].

**Table 1.** Summary on types of intellectual competencies.

judgment

Vision and imagination

Engaging communication

### *2.1.2. Managerial competencies*

Managerial competencies of a project manager play a crucial role in projects and these require a project leader to be able to provide consistent motivation to his or her team, encouraging


**Table 1.** Summary on types of intellectual competencies.

individuals in a working environment whereas management involves directing people to get from one point to another, using a known set of competencies [4]. The competence of project manager as leader has been recognized in literature [5] and one of the key reasons for failure

Competence is a quality or state of ability, effectiveness, sufficiency, or success [7]. However, a disagreement exists over the spellings of the term and two words, competency and competence, which are used with slightly different notion [8]. Competency is related to effective or superior performance in a job which is an underlying characteristic of an individual [9, 10]. Competencies are expressed as the behaviors that an individual needs to demonstrate to perform a job in different organization culture [10, 11]. On the other hand, competences are related to activities in an occupation which are expressed as minimum standards of compe-

The purpose of this chapter is to explore earlier studies on project manager's leadership competencies to synthesize their key findings and future directions for the researchers. A few literature review studies focused on identifying personality and leadership style of the project manager as a success factor [12] and exploring how performance of leadership in project management determines project outcomes [3]. This chapter was guided by the following research questions: (a) What are key leadership competencies explored in literature? (b) What are the key findings of studies on project manager's leadership competencies? and (c) What

The project manager's role has changed from directing or managing to leading and therefore, a project manager needs to have requisite leadership competencies and skills [57]. Project management studies have highlighted the significance of project manager's leadership competencies in achieving project success [13, 58] and therefore, the researcher has identified a number of leadership competencies required for a project manager. Leadership competencies in project management literature have been classified into three main categories including intellectual competencies (IQ), managerial competencies and emotional competencies by different researchers [12, 14–17].

The intellectual competencies refer to intelligence, ability of understanding the work, performing problem solving and cognitive activities such as connecting and applying relevant concepts, systematic thinking and recognizing patterns [15, 17]. Accordingly, three types of

Managerial competencies of a project manager play a crucial role in projects and these require a project leader to be able to provide consistent motivation to his or her team, encouraging

intellectual competencies identified in the literature [12, 18], are presented in **Table 1**.

tent performance [11]. These two concepts can be taken as complementary [8].

are future directions suggested by earlier research studies?

**2. Literature review**

**2.1. Leadership competencies**

*2.1.1. Intellectual competencies (IQ)*

*2.1.2. Managerial competencies*

of project is lack of leadership competence [6].

124 Organizational Culture


Source: developed based on [19–21].

**Table 2.** Summary on types of managerial competencies.

them to attain excellence and quality in their performance, looking for ways to improve production and standards. According to the literature, managerial competencies have dimensions which are presented in **Table 2**.

#### *2.1.3. Emotional competencies*

The person's ability to perceive, identify and manage his or her emotions as well as understanding and regulating those of others are the basis for the emotional competencies. A certain level of emotional intelligence is compulsory to learn these competencies. According to Trivellas [16], successful project managers have higher levels of emotional intelligence as compared to their counterparts. Emotional competencies have seven dimensions which are presented in **Table 3**.

#### **2.2. Theories of leadership**

A leader has cognitive (managerial) and cathectic (emotional and motivational) functions. Aristotle's view was that a leader must build relationships with the team, advocate a moral vision, and induce by logic to manage actions. The concept of leadership has evolved over last 80 years and resulted in six leadership theories which are presented in **Table 4**.

Competency theory is a blend of all earlier theories as it encompasses emotional intelligence, behaviors and traits in terms of competencies [8, 22]. Therefore, leadership Competencies are the skill set, knowledge and behavior through which different organizations assess and develop the leader within the organization. The research on leadership gave rise to

> six leadership theories that evolved over a period of the last 80 years [12, 14, 15]. These theories have been adopted in all aspects of management, including organizational management and project management, with necessary adjustments specific to these areas. The most recent of these theories is the competency theory of leadership that gained popularity

Trait theories These theories remained famous until 1940s which said that successful leaders possessed similar traits and assumed that leaders are born not made.

Behavioral theories Behavioral theories were prominent from 1940s to 1960 and said that leaders adopted some

Contingency theories These theories remained center of focus during 1960s and 1970s and suggested that success

Competency theories These theories gained popularity during late 1990s and these focused on the competencies

The visionary school of thought was famous from 1980s to 1990s and these theories were based on the studies of effective business leaders who introduced a change in their

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These were famous during late 1990s and these suggested that it was the emotional intelligence that had more effect on leader's personal performance as well as that of his or

of successful leaders rather than their traits, as was the case of *the trait theories,* and therefore these theories suggested that one could learn the competencies [13] and thus leaders could

specific behaviors and thus leaders could be made.

her team, rather than leader's intellectual capability.

of a leader was dependent on situation.

organization.

Source: developed by the author based on review of literature.

**Table 4.** Summary on theories of leadership.

be made [12, 14, 15, 17].

The use of different tools and techniques has not helped in reducing the failure rate in projects. This situation has allowed the focus to shift from technology, techniques and hard skills to soft skills and leadership as a solution to the problem of project failure. Leadership competencies involved in effective management of projects can be classified at four different levels.

Project managers tend to have multiple skills and competencies to more competitive and prominent because traditional managerial skills are not enough for effective business in functional or matrix based organization. Such skills and competencies are essential for project managers to perform activities effectively because a project manager's job is more demanding and tend to deal with uncertain circumstances. Classification of competencies at level of

Project managers act as a role model for the team members who establish an environment of honesty and provide opportunity for continuous learning. Project managers should possess good interpersonal skills and the need to focus on developing skills of the people involved in the project. In project environment, a leader provides flexible environment and encourage

during late 1990s.

Visionary or charismatic theories

theories

Emotional intelligence

*2.3.1. Managing self*

**2.3. Classification of leadership competencies**

managing self is presented in **Table 5**.


**Table 3.** Summary on types of emotional competencies.


**Table 4.** Summary on theories of leadership.

of emotional intelligence is compulsory to learn these competencies. According to Trivellas [16], successful project managers have higher levels of emotional intelligence as compared to their counterparts. Emotional competencies have seven dimensions which are presented in

A leader has cognitive (managerial) and cathectic (emotional and motivational) functions. Aristotle's view was that a leader must build relationships with the team, advocate a moral vision, and induce by logic to manage actions. The concept of leadership has evolved over last

Competency theory is a blend of all earlier theories as it encompasses emotional intelligence, behaviors and traits in terms of competencies [8, 22]. Therefore, leadership Competencies are the skill set, knowledge and behavior through which different organizations assess and develop the leader within the organization. The research on leadership gave rise to

Self-awareness Self awareness is about the leader's own capability and feelings which helps to recognize

Emotional resilience Emotional resilience requires a leader to perform consistently in a range of situations

Intuitiveness Intuitiveness is a capability of leaders to develop their decision making and effective

Interpersonal sensitivity Leaders with interpersonal sensitivity should be aware of the perceptions of others to

Influence The leaders encourage views of others based on understanding of their position and

Motivation Motivation competency pertains to having drive and energy to achieve clear results

Conscientiousness Leaders having conscientiousness competencies exhibit personal commitment, ethical

even though presented with ambiguous or incomplete information.

should actively listen for their constructive inputs and criticism.

and manage activities in a way that one experience that one can manage. It includes awareness of one's own feelings and the capability to recognize and manage these in a way that one feels that one can control. Therefore, leader requires a certain level of capability of self-belief to control one's emotion and manage their activities to efficiently

under pressure and adapts behavior appropriately. Moreover, he or she balances the needs of the situation and task with the needs and concerns of the individuals involved. Further, a leader focuses on strategy to cope with personal challenges or criticism to

implementation of decisions. The decisions made by intuitiveness leaders should be clear

make decisions and propose solutions. This competency demands that a leader should be aware of others achievements and commitments to actions or decisions. The leaders

stature. The leaders appreciate to listen to the perspective of others and provide rational

and make an impact. It requires a leader to balance short- and long-term goals with a capability to pursue demanding goals in the face of rejection or questioning.

consideration, and solution to business issues. The leaders encourage others to support the chosen directions and display commitment for providing course of action to manage

80 years and resulted in six leadership theories which are presented in **Table 4**.

perform in working environment.

achieve better results.

for change in organization.

challenges.

**Table 3.** Summary on types of emotional competencies.

Source: developed based on [19–21].

**Table 3**.

126 Organizational Culture

**2.2. Theories of leadership**

six leadership theories that evolved over a period of the last 80 years [12, 14, 15]. These theories have been adopted in all aspects of management, including organizational management and project management, with necessary adjustments specific to these areas. The most recent of these theories is the competency theory of leadership that gained popularity during late 1990s.

#### **2.3. Classification of leadership competencies**

The use of different tools and techniques has not helped in reducing the failure rate in projects. This situation has allowed the focus to shift from technology, techniques and hard skills to soft skills and leadership as a solution to the problem of project failure. Leadership competencies involved in effective management of projects can be classified at four different levels.

#### *2.3.1. Managing self*

Project managers tend to have multiple skills and competencies to more competitive and prominent because traditional managerial skills are not enough for effective business in functional or matrix based organization. Such skills and competencies are essential for project managers to perform activities effectively because a project manager's job is more demanding and tend to deal with uncertain circumstances. Classification of competencies at level of managing self is presented in **Table 5**.

Project managers act as a role model for the team members who establish an environment of honesty and provide opportunity for continuous learning. Project managers should possess good interpersonal skills and the need to focus on developing skills of the people involved in the project. In project environment, a leader provides flexible environment and encourage


**Table 5.** Classification of competencies at level of managing self.

problem solving approach. Oral and written communication of a leader in the project should be clear, concise and convincing.

leadership competencies ensure the effective management of projects through coordinated project management processes and team members. Classification of competencies at level of

It refers to building and managing workforce based on organizational goals, budget considerations, and staffing needs. A leader ensures employees are appropriately recruited, selected, appraised, and rewarded; takes action to address performance problems and

workplace. This focus of leaders in organization helps to achieve the visions and mission. The

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criticism and welcome to listen differences of opinions from others. The leader avoids confrontation at workplace and encourages resolving conflicts or disagreements through

fulfilled. These leaders focus on public interest aligned with organizational objectives and

toward the organization. Leaders with developing approach provide continuous feedback to improve performance and provide opportunities of formal and informal organizational

manages a multi-sector workforce and a variety of work situations. Leveraging diversity This competency requires a leader to focus on differences and values of individuals at

leaders have diversity and leverage to achieve organization outcomes. Conflict management Conflict management one of the key issue at workplace. A leader appreciates constructive

Public motivation Leaders show commitment to serve the public and ensure that needs of the public are

Developing Developing is an ability of leaders to develop the team members who perform to contribute

For successful implementation of projects, project managers focus on team building and creating an environment of trust and motivation. Project managers employ appropriate skills and knowledge to meet the expectations of both internal and external project stakeholders. Project managers are responsible for achieving time, cost and quality parameters in projects. In projects, project managers have to take right and timely decisions with consensus of all key

Programs are combination of multiple projects in an organization with short-term and long term objectives. Project leader motivate and guide the team members to achieve organizational goals and objective through effective implementation of programs. Classification of

Project leader ensures effective use of technology and keep up to date on technological advancement for achieving high results and managing financial constraints. To ensure effective management of programs and achieve common goals, project leader encourages creativity and innovation, develop strategic partnerships, and identify internal and external

competencies at level of managing programs is presented in **Table 8**.

managing projects is presented in **Table 7**.

culture.

learning.

Source: developed by the author based on review of literature.

**Table 6.** Classification of competencies at level of managing people.

constructive discussion

stakeholders.

Human capital management

politics.

*2.3.4. Managing programs*

### *2.3.2. Managing people*

A lot of risks and uncertain circumstances are associated with projects during the life cycle. To cater such types of risks and situations, project manager must be able to manage the people though managerial and leadership skills. Every stage of a project or situation requires different leadership skills or competencies. Classification of competencies at level of managing people is presented in **Table 6**.

For effective management of projects, a project leader must be competent to manage the people and involved in recruitment and selection process of team members. The selected workforce must be on the basis of need those should be able to achieve the mission and targets of the organization. The project leader should focus on differences and values of people at workplace in addition to appreciating constructive criticism and listening differences of opinions. Project manager ensures the public interest and develop the abilities of their team members.

### *2.3.3. Managing projects*

Leadership competence of a project manager does not mean that project would be successful but it increases the likelihood of project success. Project manager's both management and


**Table 6.** Classification of competencies at level of managing people.

leadership competencies ensure the effective management of projects through coordinated project management processes and team members. Classification of competencies at level of managing projects is presented in **Table 7**.

For successful implementation of projects, project managers focus on team building and creating an environment of trust and motivation. Project managers employ appropriate skills and knowledge to meet the expectations of both internal and external project stakeholders. Project managers are responsible for achieving time, cost and quality parameters in projects. In projects, project managers have to take right and timely decisions with consensus of all key stakeholders.

#### *2.3.4. Managing programs*

Integrity/honesty A leader behaves in an honest, fair, and ethical manner and shows consistency in words and actions also exhibit high standards of ethics.

Interpersonal skills These skills require a leader to treat others with courtesy, sensitivity, and respect. He or

Continual learning Continual learning refers to assessing and recognizing own strengths and weaknesses

Resilience It refers to dealing effectively with pressure; remaining optimistic and persistent, even under adversity and recovering quickly from setback. Oral communication Leader makes clear and convincing oral presentations, listens effectively and clarifies

Written communication A leader writes in a clear, concise, organized, and convincing manner for the intended

Flexibility Flexibility means a leader is open to change and new information and rapidly adapts to new information, changing conditions, or unexpected obstacles.

problem solving approach. Oral and written communication of a leader in the project should

A lot of risks and uncertain circumstances are associated with projects during the life cycle. To cater such types of risks and situations, project manager must be able to manage the people though managerial and leadership skills. Every stage of a project or situation requires different leadership skills or competencies. Classification of competencies at level of managing

For effective management of projects, a project leader must be competent to manage the people and involved in recruitment and selection process of team members. The selected workforce must be on the basis of need those should be able to achieve the mission and targets of the organization. The project leader should focus on differences and values of people at workplace in addition to appreciating constructive criticism and listening differences of opinions. Project manager ensures the public interest and develop the abilities of their team members.

Leadership competence of a project manager does not mean that project would be successful but it increases the likelihood of project success. Project manager's both management and

Problem solving This competency ensures that a leader identifies and analyzes problems; weighs

in different situations.

information as needed.

and makes recommendations.

audience.

Source: developed by the author based on review of literature.

**Table 5.** Classification of competencies at level of managing self.

be clear, concise and convincing.

people is presented in **Table 6**.

*2.3.3. Managing projects*

*2.3.2. Managing people*

128 Organizational Culture

and pursuing self-development.

she considers and responds appropriately to the needs and feelings of different people

relevance and accuracy of information; generates and evaluates alternative solutions;

Programs are combination of multiple projects in an organization with short-term and long term objectives. Project leader motivate and guide the team members to achieve organizational goals and objective through effective implementation of programs. Classification of competencies at level of managing programs is presented in **Table 8**.

Project leader ensures effective use of technology and keep up to date on technological advancement for achieving high results and managing financial constraints. To ensure effective management of programs and achieve common goals, project leader encourages creativity and innovation, develop strategic partnerships, and identify internal and external politics.


2005–2017 from different databases including Web of Science, Emerald, Taylor & Francis, Science Direct, SAGE, IEEE, etc. The searched articles were scrutinized to avoid any duplication. Then only those studies were included which discussed project manager's leadership

Based on extensive literature review, findings and research gaps of earlier studies published from 2005 to 2017 on project manager's leadership competence are summarized in this section. Project managers focused on task-oriented, intellectual, managerial and emotional competencies to enhance the likelihood of project success, summary of which is presented in **Table 9**. The researcher suggested more research should be conducted on leadership competencies involving all key project stakeholders during data collection. Situational and emotional theories

> • Data collection from all key project stakeholders instead of only project managers to identify other leadership factors affecting

> • Leadership behavior could be further enhanced by integrating additional constructs, such as situational theories, emotional and social dimensions as well as the moderating roles of education, experi-

> • Conceptual, tender, procurement and operational phases of the project lifecycle may be considered by further research work.

> • Limiting the participants to a maximum of 10 questions per survey, assigning a limited timeframe to collect, gather, analyze,

> • A larger sample size is certain to make the results statistically more significant.

> • Participants, excluding project manager or project team member roles, may provide a deeper understanding of HRM in projects. • Identify the relationship between project manager's involvement in HRM practices,

motivation, and project success.

performance of projects.

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ence and gender of leaders.

and report survey results.

**Author/year Findings Research gaps**

• Task-oriented leadership competencies of project managers significantly and positively affect project performance in

• Leadership competencies directly impact the success criteria for sustainable building projects and intellectual competencies of project managers can play the most significant role in sustainable building

• From the senior management perspective, project managers must possess leadership competences toward ensuring effective management at the design phase of the

• There is a need to apply literature review and surveys for subsequent exploration of the importance of leadership competencies, management techniques, and styles of leadership that project managers effectively employ to manage teams and

• Need to redefine project manager's long-term strategic competence

• Need for inclusion of project manager's HRM (human resource management) practices in project management theories • There is a need for a projects perspective in HRM literature to improve the perfor-

public sector projects.

achievements.

project.

individuals.

management.

mance of organizations.

theory either qualitatively or quantitatively.

**4. Results of research**

Ahmed and Anantatmula (2017) [6]

[23]

[25]

Tabassi et al. (2016)

Ahadzie et al. (2014) [24]

Galvin et al. (2014)

Medina and Medina (2014) [26]

Source: developed by the author based on review of literature.

**Table 7.** Classification of competencies at the level of managing project.


Source: developed by the author based on review of literature.

**Table 8.** Classification of competencies at level of managing program.

#### **3. Research methods**

In this chapter, those articles were considered for review which must be published in the English and peer reviewed journal. Furthermore, specific searching keywords were used to identify relevant articles published on project manager's leadership competence during 2005–2017 from different databases including Web of Science, Emerald, Taylor & Francis, Science Direct, SAGE, IEEE, etc. The searched articles were scrutinized to avoid any duplication. Then only those studies were included which discussed project manager's leadership theory either qualitatively or quantitatively.

### **4. Results of research**

**3. Research methods**

In this chapter, those articles were considered for review which must be published in the English and peer reviewed journal. Furthermore, specific searching keywords were used to identify relevant articles published on project manager's leadership competence during

Team building Leaders build their team through commitment, feeling pride, and establishing environment

Customer service Leaders prefer to meet the expectations of both internal and external customers. Leaders

Technical credibility Leader's technical competency refers to understanding of appropriate skills, knowledge,

Accountability Leaders hold themselves accountable for achieving high quality, timely, and cost effective

Decisiveness A leader considers the impact and implications of decisions made to achieve the desired

Negotiation Negotiation is competency of a leader to persuade others; build consensus through give and

Technology management A leader keeps up-to-date on technological developments, makes effective use

Financial management This competency refers to understanding the organization's financial processes;

Creativity/innovation It pertains to developing new insights into situations; questioning conventional

Political savvy Political savvy helps leader to identify the internal and external politics that impact

new or cutting edge programs/processes. Partnering A leader develops networks and builds alliances; and collaborates across

political reality and acts accordingly.

is one of the key skills of a leader to satisfy the customer or any stakeholder.

team member to achieve desired goals.

organizational performance.

their specialized expertise.

available information.

**Table 7.** Classification of competencies at the level of managing project.

systems.

and rules.

130 Organizational Culture

Source: developed by the author based on review of literature.

Source: developed by the author based on review of literature.

**Table 8.** Classification of competencies at level of managing program.

of trust. Leaders with strong team building abilities always extend cooperation and motivate

consistently deliver high quality product or services to the customer for improving their

policy and procedures. Leaders ensure to meet the technical demand of customer based on

outcomes. To meet the objectives, a leader set priorities, accept the responsibilities in case of any mistakes, delegates work to the team, and ensure compliance with defined procedures

objectives in an organization. Leader ensures to take timely and effective decision based on

take; gain cooperation from others to obtain information and accomplish goals. Negotiation

of technology to achieve results and ensure access to and security of technology

preparing, justifying and administering the program budget. It also involves overseeing procurement and contracting to achieve desired results; monitoring

boundaries to build strategic relationships and achieve common goals.

approaches; encouraging new ideas and innovations; designing and implementing

the work of the organization. As a result, he or she perceives organizational and

expenditures and using cost–benefit thinking to set priorities.

Based on extensive literature review, findings and research gaps of earlier studies published from 2005 to 2017 on project manager's leadership competence are summarized in this section. Project managers focused on task-oriented, intellectual, managerial and emotional competencies to enhance the likelihood of project success, summary of which is presented in **Table 9**.

The researcher suggested more research should be conducted on leadership competencies involving all key project stakeholders during data collection. Situational and emotional theories



should be integrated to conduct research in all phases of project life cycle. Roles and responsibilities should be clearly defined in the project and a larger sample size may be collected for research other than project managers and team members. Leadership competencies should be considered at the time of appointment of project managers and their impact on projects at different industry, sector, or country level needs to be explored. The role of project leadership should also be considered by quantitative studies at the level of a cross-section of industries

**Author/year Findings Research gaps**

• There exists a link between managerial competencies and project success. • The MQ leadership dimensions seem to play a significant role in influencing or

• To establish a relationship between

Leadership Competencies Affecting Projects in Organization

organization.

leadership dimensions and project success factors, broader study encompassing a cross-section of industries and countries is required that could be transferable to any

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133

• There is a scarcity of literature addressing the need for different leadership styles for

• Moreover, the contribution of the project manager's leadership style to project success has largely been ignored.

• Future research to define and quantitatively and relate switches in leadership approaches with success on projects.

• Further research should investigate interactions between follower commitment and leader performance via self-appraisal. • Dimensions of leadership to be closely linked to various aspects of commitment.

different types of projects.

• The leadership-project success model developed is likely to be of interest to any

• Project manager's leadership competencies are correlated with project success and different leadership styles are appropriate

affecting project success.

project-based organization.

for different types of project. • Significant correlations were found with each of the three competence types, EQ, MQ and IQ, and each of the constituent

competency dimensions.

sector organizations.

focused relevance.

Source: developed by the author based on review of literature.

• Relationship-oriented project managers provided more successful projects. • The more experienced the project manager, the higher chances of project success. • The transformational approach was a positive role model for the team.

• The results support the use of leadership assessment and development for identifying potential in both public and private

• The selection of leaders should become more accurate and development actions contained in the LDQ may report more

**Table 9.** Summary of findings and research gaps on project manager's leadership competencies.

The leadership styles of project managers contribute in adoption of information technology and knowledge sharing which can impact on projects. There is a strong link between transformational project leaders and satisfaction of project team members. Leadership styles adopted

and countries.

Geoghegan and Dulewicz (2008)

Müller and Turner (2007) [30]

Prabhakar (2005)

Dulewicz and Higgs (2005) [19]

[31]

[13]


**Author/year Findings Research gaps**

• Positive correlation exists between EQ (emotional intelligence), IQ (intellectual competencies), and MQ (managerial competencies) competencies, and project success. • The presence of project complexity as a moderator variable lowered the significance of the relationship between project manager's leadership competencies and

• Study found that defining roles and responsibilities is the foremost step for managing and leading projects successfully. • The leadership and technology roles could be different based on the disposition of project characteristics and the

• Leadership roles could be industry-specific due to differing industry-specific work cultures and competitive environments.

• Mixture of leadership competencies might influence the amount of emphasis leaders put on each of the three key activities associated with the implementation of planned organizational change, which requires further investigation.

• In the absence of leaders who are effective at both task-oriented and person-oriented behaviors, employing multiple changes with complementary competencies might be an effective way to address the

• Leadership competencies directly correlate with project success measures. • Competencies in managing resources and the strategic perspective of the project manager, in particular, correlate with the majority of success measures in

• Attitudes directly correlate with project success (namely customer and end-user

implementation process.

projects.

satisfaction).

project.

project success.

industry.

• Concrete evidence exists that competencies can be linked to project success. • The perception and importance of leadership competencies may help diagnose the expected project success and may increase the prospect of its timely impact on a

• Defining a clear rule for the impact of competences on project success. • Future research should consider leadership competencies examined at the time of appointment of project managers and analyze their subsequent impact on

• Future research may use the competence school of leadership and the Leadership Dimension Questionnaire (LDQ) approach derived at industry, sector, or country

• Further studies in assorted cultures or disciplines may enlighten other aspects of complexity in projects on account of new

• Further exploration of project leadership roles for different types of projects and different industries to be taken up by increasing the data size and diversity of

• In addition, this model should be used in various projects and different industries to validate and confirm these results.

• The following questions merit further

• Are the leaders who do so the most

• Answers to these questions are likely to vary depending on the type of change and the type of organization in which change is

• The differences to be looked into by project type, industry, and geography. • The complexity of the human personality provides features and rich avenues for further research, which can help academics to understand the project phenomenon, and practitioners to become more success-

• Do leaders need to emphasize all change implementation activities to successfully

projects.

levels.

questions.

participants.

exploration:

successful?

implemented.

ful in delivering projects.

implement change?

Nahod et al. (2013)

132 Organizational Culture

Müller et al. (2012)

Anantatmula (2010) [28]

Battilana et al. (2010) [29]

Müller and Turner (2010) [21]

[27]

[20]

**Table 9.** Summary of findings and research gaps on project manager's leadership competencies.

should be integrated to conduct research in all phases of project life cycle. Roles and responsibilities should be clearly defined in the project and a larger sample size may be collected for research other than project managers and team members. Leadership competencies should be considered at the time of appointment of project managers and their impact on projects at different industry, sector, or country level needs to be explored. The role of project leadership should also be considered by quantitative studies at the level of a cross-section of industries and countries.

The leadership styles of project managers contribute in adoption of information technology and knowledge sharing which can impact on projects. There is a strong link between transformational project leaders and satisfaction of project team members. Leadership styles adopted at senior, middle and lower levels can be different in different projects. Summary of findings and research gaps on project manager's leadership styles is presented in **Table 10**.

There is a need of greater commitment among project manager and human resource department. Managerial, personality and emotional intelligence competencies of project managers along with other characteristics and attitude are helpful in projects. Summary of findings and research gaps on project manager's emotional competencies is presented in

> • The features of the project manager other than personal characteristics and pm attitude need to be identified.

Leadership Competencies Affecting Projects in Organization

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135

• Competency profiles may be designed for the employees other than project managers working on various positions

• Managerial and personality profiles should be connected to correlate personality types to leadership styles.

• There is a need for further research to probe for a greater commitment among both the human resource sections and

• Future studies should consider larger sample sizes to examine intelligence competencies of individual rather than highlight the significance of specific

• Identify the extent to which project manager's competencies associated with emotional intelligence related abilities actually account for variations in project outcomes. Plus the significant relationships found in the study can be replicated using much larger

in organizations.

project managers.

competencies.

populations.

**Author/year Findings Research gaps**

ers and project management attitudes are highly important for achieving project

• Emotional intelligence competencies of project managers had high importance compared to other competencies, which should be considered by project-based organizations along with competent project

• Most successful project managers possess common core traits, such as extroversion, rational judging and structured

• A positive relationship exists between project managers' emotional intelligence

and their professional success. • Improving project managers' emotional intelligence is significantly beneficial for the organization, project and team success,

and project management field.

ligence toward leadership effectiveness is important and there is a need to maintain a balanced interaction between emotions

• Project leaders may be trained to use a combination of emotional intelligence based competencies and a transformational leadership style for increased effectiveness.

exist between emotional intelligence (EI) measures and the dependent measures examined in the study. Overall EI scores were all found to be positively correlated with the project manager competence associated with teamwork and managing

**Table 11.** Summary of findings and research gaps on project manager's emotional competencies.

Blaskovics (2016) [38] • Personal characteristics of project manag-

success.

managers.

behaviors.

Ying et al. (2012) [42] • The significance of emotional intel-

and intellect.

Clarke (2010) [43] • A number of significant correlations

conflicts.

Source: developed by the author based on review of literature.

**Table 11**.

Khanaposhtayi and Abyane (2015) [39]

Montequin et al. (2015) [40]

Obradovica et al. (2013) [41]

Different leadership styles of project managers in different situations are required to be identified. Future research should consider collecting more responses and applying different sampling methods for collection of data. Employees other than project managers may be considered for designing their competency profiles at company level and using qualitative data.


Source: developed by the author based on review of literature.

**Table 10.** Summary of findings and research gaps on project manager's leadership styles.

There is a need of greater commitment among project manager and human resource department. Managerial, personality and emotional intelligence competencies of project managers along with other characteristics and attitude are helpful in projects. Summary of findings and research gaps on project manager's emotional competencies is presented in **Table 11**.

at senior, middle and lower levels can be different in different projects. Summary of findings

Different leadership styles of project managers in different situations are required to be identified. Future research should consider collecting more responses and applying different sampling methods for collection of data. Employees other than project managers may be considered for designing their competency profiles at company level and using

> • Due to inadequate respondents, future research should apply random sampling method to collect more responses.

• Appropriate project managers leadership styles should be identified for different situations with different characteristics to optimize

• Future research may find insignificant or a negative relationship between transformational leadership and other forms of performance

• Further research should consider other industrial sectors and other leadership outcomes, i.e. effectiveness, extra effort, commitment, and

• The research findings can be verified by using other instruments to measure leadership behaviors and personal competencies or to employ several instruments simultaneously and results can then be contrasted.

• Potential effects of the relationships between leadership styles and outcomes, at the company level using qualitative data through focus group interview. Plus there is the need for exploration to produce more interesting

and rich data.

'organizational citizenship'.

performance.

information use.

and research gaps on project manager's leadership styles is presented in **Table 10**.

**Author/year Findings Research gaps**

• Leadership style and organization culture significantly moderate information technology adoption and knowledge sharing

• Project managers' leadership style can affect project performance and it is a significant project success factor.

• A direct relationship exists between transformational leadership and performance

• Transformational leadership can observe a powerful but indirect role in "setting the table" for the success of important management processes such as performance

• A strong correlation exists between the components of transformational leadership and subordinate satisfaction with the

• Leadership styles adopted at the senior management level can be different from those adopted at the professional to techni-

• Transactional leadership is chosen to lead technicians or site workers and may need to adopt transformational leadership when dealing with other

Found strong link between transformational and transactional leadership in organizations and project environments in the context of

**Table 10.** Summary of findings and research gaps on project manager's leadership styles.

management success.

management.

cian or worker level.

professionals.

construction industry.

Source: developed by the author based on review of literature.

leader.

intention.

qualitative data.

134 Organizational Culture

Tseng (2017) [32]

Larsson et al. (2015) [33]

Moynihan et al. (2012) [34]

Shibru and Darshan (2011)

Limsila and Ogunlana (2008) [36]

Chan and Chan (2005) [37]

[35]


Source: developed by the author based on review of literature.

**Table 11.** Summary of findings and research gaps on project manager's emotional competencies.


**Author/year Findings Research gaps**

• A strong positive relationship exists

between roles and knowledge management

• Managers can exhibit knowledge oriented roles toward employees and knowledge

• The role of managers as a knowledge facilitator encourages knowledge sharing

• Importance and impact of some of the factors contributing to the performance of global projects vary depending upon the industry in which they were executed. • Moreover, project management practices of global projects differ from traditional, co-located, and internal projects.

• Findings indicated some implications for managerial practices. Projects may suffer from the bureaucratic hurdles that require staffing of comparably strong project

• Furthermore, projects in which a low degree of trust among members is expected should be led using a dominant leadership style.

have a bias toward the rational and planning perspective, comprising a number of

• There should be a re-balancing of the course content toward more leadership issues, such as dyadic leadership and organizational politics at least in the curriculum of

• Optimism in project managers is an important attributes as only 7% of "optimists" and 60% of "pessimists" in the survey negatively

**Table 13.** Summary of findings and research gaps on project manager's knowledge competencies.

rated their work environment. • Findings suggest training and personal development of project managers to better cope with unique project work

tive environment.

management practices.

within organizations.

processes.

leaders.

Kaulio (2008) [55] • Courses in project management tend to

techniques and tools.

advanced courses.

environment.

Source: developed by the author based on review of literature.

• Effective knowledge sharing depends on knowledge leaders to develop a share vision and promote a trustworthy and collabora• The role of knowledge leaders in regard to knowledge management practice and the active and cross-functional role of leaders as supporters both at group and individual level may be investigated.

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137

• Managerial roles should take account of variables of knowledge based on roles and industry, other than energy sector,

• Establish the importance and effectiveness of each factor in the model. Establish dependency relations using statistical

• Initiate research that should validate the

• Future research requires an examination of the leadership style in cooperative projects involving different knowledge bases or types of knowledge.

• Future research should address three perspectives including leadership, coworker, and the organizational setting.

• Future research should explore optimism and its impact on project management

workplace.

for organizational benefit.

Leadership Competencies Affecting Projects in Organization

methods.

model.

Zhang and Cheng (2015) [51]

Shokrzadesh et al. (2012) [52]

Anantatmula and Thomas (2010) [53]

Curran et al. (2009)

Dolfi and Andrews (2007) [56]

[54]

Source: developed by the author based on review of literature.

**Table 12.** Summary of findings and research gaps on project manager's teamwork competencies.


Source: developed by the author based on review of literature.

**Author/year Findings Research gaps**

• Different perspectives prevail among project managers and every project should be looked at from the outset and which project management perspective shall effectively rule the

important influencing criteria of project team

• Teamwork only partially mediates the link between transactional leadership and project

• Empirically supported factors for project management are senior management support, project mission, project team competency, client acceptance and effective communication.

• Significant positive correlations were found between project manager's intuition and high project uncertainty as well as complexity. • Several correlations were found both between certain personality traits and certain project types, and between certain personality traits

• Team satisfaction played a critical role for all results measures. Experienced project managers appeared to have intuitively set priorities

• Certification was not a sufficient contributor in

• The importance assigned to team and end-user satisfaction influences almost all reported

• Teamwork links leader personality to project

• Leader personality depends on the level of uncertainty that operating projects possess. • Need to re-consider hiring criteria and the provision of training for project leaders

**Table 12.** Summary of findings and research gaps on project manager's teamwork competencies.

• Research may be conducted to see whether project team members have different

• Future studies may include project team members as part of respondents to evaluate their views regarding project manager's leadership roles in developed countries.

• Develop different models to validate and compare the efficacy through case studies. • Determine which style of project leadership is best suited for project goals and benefits that leadership competencies offer.

• Success factors of project management were established to develop a new area for further studies to ensure its potential for

• Findings to be extended to other types of projects with varied cultural, industrial and

• The concept of project complexity is not yet well comprehended and needs further

• The multitude of cultures may have an adverse effect on project results and should

• Data on a single project may be gathered

• Personality responses may be collected from leaders and performance rating data may be gathered from the senior manager

from multiple sources.

overseeing the project.

be addressed in future research.

future sustainable housing.

organizational settings.

exploration.

perspectives.

work of the project.

Fung (2014) [45] • Project manager's leadership roles are

effectiveness.

performance.

and project success.

with utmost significance.

high performing projects.

success measures.

Source: developed by the author based on review of literature.

performance.

Andersen (2013)

136 Organizational Culture

[44]

Yang et al. (2013) [46]

Kuen et al. (2009) [47]

Malach-Pines and Dvir (2008)

Müller and Turner (2007) [49]

Aronson et al. (2006) [50]

[48]

**Table 13.** Summary of findings and research gaps on project manager's knowledge competencies.

Project manager's emotional competencies associated with projects that account for variation in project outcomes needs to be explored using larger populations. Improving emotional competencies of project managers are beneficial for learning organization and achieving project success. Emotional intelligence competencies help project managers to encourage teamwork and manage conflicts.

Among many other success factors that affect project's success, leadership is one of the key contributing factors. A project manager, who acts a project leader, if have a set of requisite competencies in different organizational culture, including intellectual competencies (IQ), managerial competencies, (MQ) and emotional competencies (IQ) increases the likelihood of project success. However, the literature reveals that different project environments and conditions require a project manager to demonstrate appropriate leadership competencies that best suits for a particular culture and situation. Project manager as a project leader should be competent enough in managing self, managing people, managing project, and managing programs. On the other hand, the project manager needs to learn such leadership competencies applicable in different organizational culture for effective management of projects.

Leadership Competencies Affecting Projects in Organization

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139

This chapter explores the extensive literature on project manager's leadership competencies, but still there are certain limitations. These leadership competencies explored in this chapter are related to projects and future research should consider reviewing such leadership competencies from other disciplines. The scope of this chapter was to highlight findings and future gaps of studies published on project manager's leadership during the last one decade. Future gaps highlighted in this chapter provide avenues for researchers to conduct further research in order to fill those gaps. Future studies may consider conducting the Systematic Literature Review and Meta Analysis studies on similar topics to provide further insights in the body of knowledge. Finally, this chapter is review based analyses of research studies and in future

[1] Lunenburg FC. Leadership versus management: A key distinction—At least in theory. International Journal of Management, Business and Administration. 2011;**14**:1-4

[2] Ahmed R, Azmi N, Masood MT, Tahir M, Ahmad MS. What does project leadership really do? International Journal of Scientific & Engineering Research. 2013;**4**(1):1-8 [3] Nixon P, Harrington M, Parker D. Leadership performance is significant to project success or failure: A critical analysis. International Journal of Productivity and Performance

[4] PMI. A Guide to the Project Management Body of Knowledge (PMBOK). 6th ed. New-

town Square, Pennsylvania, USA: Project Management Institute (PMI); 2018

empirical studies may be conducted to analyze the findings of previous studies.

Address all correspondence to: riazutm@gmail.com

Management. 2012;**61**(2):204-216

Post Graduate Program, Bahria University, Islamabad, Pakistan

**Author details**

Riaz Ahmed

**References**

The project manager should clearly identify roles of team members and encourage teamwork. In projects, teamwork is one of the key success factors which should be looked at from the outset in each project. Teamwork establishes links between project manager's leadership competence and project performance. Project managers must take care of the team to best satisfaction level and act as a mentor. Summary of findings and research gaps on project manager's teamwork competencies is presented in **Table 12**.

More research is required to check whether project team members have different perspectives on the project than a project manager. Project team members should be considered as respondents to evaluate the project manager's leadership role in different sectors and countries. Best leadership styles for team members need to be identified that can be suited in multi-culture environment.

Project managers should share the vision and knowledge among team members to transform the idea into reality through projects in a collaborative environment. The project manager should possess knowledge oriented and goal oriented competencies to ensure successful implementation of projects. The success of most of the projects depends on the capacity of the industry in which they are executed and project management practices employed. Project managers should focus on training and personal development of team members which help to cope with the unique project environment. Summary of findings and research gaps on project manager's knowledge competencies is presented in **Table 13**.

Managerial roles of project managers should be considered at industry level and the role of knowledge leaders in cross-functional both at individual and group level can be considered by the researchers and organizations. Different bases or types of knowledge need to consider along with different leadership styles in cooperative projects.

### **5. Discussion and conclusion**

This chapter builds a chronology of project manager's leadership competencies by synthesizing extensive literature to contribute toward the body of knowledge and to provide opportunities for establishing strong links between project manager's leadership competencies and projects. Findings of literature review revealed that greater level of leadership competencies were associated with better project performance. Future directions of empirical studies highlighted in this chapter have not yet been addressed at large and demand for more research. A deeper understanding of the nature of the relationship between leadership competencies and project in different organizational environments could have implications that can help to identify strategies to increase project performance and promote positive behaviors of organizational culture.

Among many other success factors that affect project's success, leadership is one of the key contributing factors. A project manager, who acts a project leader, if have a set of requisite competencies in different organizational culture, including intellectual competencies (IQ), managerial competencies, (MQ) and emotional competencies (IQ) increases the likelihood of project success. However, the literature reveals that different project environments and conditions require a project manager to demonstrate appropriate leadership competencies that best suits for a particular culture and situation. Project manager as a project leader should be competent enough in managing self, managing people, managing project, and managing programs. On the other hand, the project manager needs to learn such leadership competencies applicable in different organizational culture for effective management of projects.

This chapter explores the extensive literature on project manager's leadership competencies, but still there are certain limitations. These leadership competencies explored in this chapter are related to projects and future research should consider reviewing such leadership competencies from other disciplines. The scope of this chapter was to highlight findings and future gaps of studies published on project manager's leadership during the last one decade. Future gaps highlighted in this chapter provide avenues for researchers to conduct further research in order to fill those gaps. Future studies may consider conducting the Systematic Literature Review and Meta Analysis studies on similar topics to provide further insights in the body of knowledge. Finally, this chapter is review based analyses of research studies and in future empirical studies may be conducted to analyze the findings of previous studies.

### **Author details**

#### Riaz Ahmed

Project manager's emotional competencies associated with projects that account for variation in project outcomes needs to be explored using larger populations. Improving emotional competencies of project managers are beneficial for learning organization and achieving project success. Emotional intelligence competencies help project managers to encourage teamwork

The project manager should clearly identify roles of team members and encourage teamwork. In projects, teamwork is one of the key success factors which should be looked at from the outset in each project. Teamwork establishes links between project manager's leadership competence and project performance. Project managers must take care of the team to best satisfaction level and act as a mentor. Summary of findings and research gaps on project manager's

More research is required to check whether project team members have different perspectives on the project than a project manager. Project team members should be considered as respondents to evaluate the project manager's leadership role in different sectors and countries. Best leadership styles for team members need to be identified that can be suited in multi-culture

Project managers should share the vision and knowledge among team members to transform the idea into reality through projects in a collaborative environment. The project manager should possess knowledge oriented and goal oriented competencies to ensure successful implementation of projects. The success of most of the projects depends on the capacity of the industry in which they are executed and project management practices employed. Project managers should focus on training and personal development of team members which help to cope with the unique project environment. Summary of findings and research gaps on

Managerial roles of project managers should be considered at industry level and the role of knowledge leaders in cross-functional both at individual and group level can be considered by the researchers and organizations. Different bases or types of knowledge need to consider

This chapter builds a chronology of project manager's leadership competencies by synthesizing extensive literature to contribute toward the body of knowledge and to provide opportunities for establishing strong links between project manager's leadership competencies and projects. Findings of literature review revealed that greater level of leadership competencies were associated with better project performance. Future directions of empirical studies highlighted in this chapter have not yet been addressed at large and demand for more research. A deeper understanding of the nature of the relationship between leadership competencies and project in different organizational environments could have implications that can help to identify strategies to increase project performance and promote positive behaviors of organizational culture.

project manager's knowledge competencies is presented in **Table 13**.

along with different leadership styles in cooperative projects.

**5. Discussion and conclusion**

and manage conflicts.

138 Organizational Culture

environment.

teamwork competencies is presented in **Table 12**.

Address all correspondence to: riazutm@gmail.com

Post Graduate Program, Bahria University, Islamabad, Pakistan

### **References**


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**Chapter 8**

Provisional chapter

**Transformational Leadership and Organizational**

Transformational Leadership and Organizational

Culture: Keys to Binding Employees to the Dutch

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

public sector, binding, the Netherlands

http://dx.doi.org/10.5772/intechopen.81003

**Sector**

Public Sector

Abstract

1. Introduction

Saniye Çelik

Saniye Çelik

**Culture: Keys to Binding Employees to the Dutch Public**

DOI: 10.5772/intechopen.81003

In response to the growing ethnic and cultural diversity in Dutch society and its labor market, public organizations in the Netherlands are increasingly crafting diversity policies and conducting diversity interventions. Little is known, however, about the effectiveness of interventions that are used to improve employee engagement in the public sector. This chapter discusses the influence of diversity interventions related to the binding of employees with Dutch public organizations with an emphasis on the role of leadership and organizational culture. This chapter concludes that transformational leadership and organizational culture are the keys to the binding of employees to the public sector in today's diverse Netherlands. An inclusive organizational culture in which there is a room for diversity is decisive for the success of interventions used in public organizations. It also appears that managers of these organizations play a critical role. The effect of diversity interventions on the binding of employees with their organizations appears to be less when the manager uses a transformational leadership style. This demonstrates the importance of an inclusive organizational culture and a people-oriented transformational leadership style in the Dutch public sector.

Keywords: diversity intervention, transformational leadership, organizational culture,

Partly due to sociocultural and demographic developments in the society, the diversity of the Dutch workforce is changing. As of 2018, the number of people with a migration background in the Netherlands is over one-fifth of the total population (22.6%). Ten years ago, it was 16%, and the non-Western group has increased in particular because of higher birth rates and

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and eproduction in any medium, provided the original work is properly cited.

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

#### **Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector** Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

DOI: 10.5772/intechopen.81003

Saniye Çelik Saniye Çelik

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.81003

#### Abstract

In response to the growing ethnic and cultural diversity in Dutch society and its labor market, public organizations in the Netherlands are increasingly crafting diversity policies and conducting diversity interventions. Little is known, however, about the effectiveness of interventions that are used to improve employee engagement in the public sector. This chapter discusses the influence of diversity interventions related to the binding of employees with Dutch public organizations with an emphasis on the role of leadership and organizational culture. This chapter concludes that transformational leadership and organizational culture are the keys to the binding of employees to the public sector in today's diverse Netherlands. An inclusive organizational culture in which there is a room for diversity is decisive for the success of interventions used in public organizations. It also appears that managers of these organizations play a critical role. The effect of diversity interventions on the binding of employees with their organizations appears to be less when the manager uses a transformational leadership style. This demonstrates the importance of an inclusive organizational culture and a people-oriented transformational leadership style in the Dutch public sector.

Keywords: diversity intervention, transformational leadership, organizational culture, public sector, binding, the Netherlands

### 1. Introduction

Partly due to sociocultural and demographic developments in the society, the diversity of the Dutch workforce is changing. As of 2018, the number of people with a migration background in the Netherlands is over one-fifth of the total population (22.6%). Ten years ago, it was 16%, and the non-Western group has increased in particular because of higher birth rates and

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and eproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

marriages from their country of origin. The five largest migrant groups in the Netherlands today are Turkish, Moroccan, Indonesian, German, and Surinamese. About 26% of those 25 years and younger have a migration background [1]. The participation of women in the labor market has also increased in the recent decades. All these changes have repercussions on the composition of the staff in public organizations. Because of its exemplary role as the largest employer of about 1 million employees, the Dutch public sector has devoted an increasing amount of attention to promoting diversity since the 1980s. At that time, the need arose to eliminate the disadvantages faced by minorities in education and labor market and to prevent unequal treatment, prejudice, and discrimination [2].

access and legitimacy, and integration and learning. These perspectives connect diversity with

Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

http://dx.doi.org/10.5772/intechopen.81003

147

The discrimination and fairness perspective, also called the justice perspective, takes as a moral starting point the principle that everyone is equal and must be treated equally. Differences within an organization are mentioned and emphasized as little as possible, and the explicit effect of diversity on the functioning of the organization is downplayed. This perspective focuses on providing equal opportunities for recruitment and promotion and on the suppression of prejudice and discrimination toward minority groups [21]. Organizations adopting this perspective do so out of a moral duty to reflect a just society [22] and to obtain legitimacy and public credibility [23]. The "target group" policy was developed from this perspective on diversity; it involves offering equal opportunities in recruitment and promotion to promote the proportional representation of different sociodemographic groups in organizations [24]. A vivid of an example of this kind of intervention is the use of target figures or quotas to improve the influx, promotion, and retention of target groups such as women, immigrants, and the elderly and young people [25]. This kind of intervention has been part of standard Dutch

The access and legitimacy perspective is based primarily on the opportunities that diversity offers for the market, such as gathering knowledge about different groups in society and finding links and ties with them. It is about increasing the legitimacy and recognizability of organizations among certain ethnic groups, based on the realization that the market in which organizations are active is becoming increasingly ethnically diverse. Organizations respond to this development by increasing the diversity of their staff in order to gain better access to and gain legitimacy among various groups in the market; in short, they can better meet the needs of customers and clients [19, 26]. The underlying idea is that people with a given background are more likely to understand and communicate effectively with those who share that background. Organizations aim to benefit by creating more connections between their employees and the public. A typical intervention from the access and legitimacy perspective is the diverse composition of selection teams to recognize the qualities of applicants with different backgrounds [27] and make recruitment policy and its execution as value-free as possible [28]. The focus of the "diverse composition of selection teams" intervention involves the use of both men and women and those with both native and migrant backgrounds in the selection process to increase the recognition of the qualities of diverse talent. This approach can help counter the often-observed tendency of organizations and those who work at them to select candidates who are similar to them or their

The integration and learning perspective relates to organizational processes. Organizations that operate from this perspective strive for diversity in their workforce on the premise that such differences contribute to creativity, innovation, and better products and services and can thus improve organizational performance [29]. Diversity is seen as an internal source of productivity because the knowledge, insights, and skills of employees from different ethnic or cultural groups are better utilized in practice. Organizations that strive for diversity from the

the equality, legitimacy, and productivity, respectively, of the organization.

2.1. Diversity perspectives and interventions

government policy since 1994.

current employees.

The diversity policy of the public sector has long been characterized first and foremost by striving for a workforce composition balanced by gender, ethnic origin, and age [3]. Over the past four decades, numerous diversity interventions have been aimed at the intake, transfer, and retention of employees of non-Dutch origin in public organizations [4–5]. However, these interventions did not significantly increase the proportion of immigrants working in public organizations. Their share of public administration positions—despite all the various initiatives and policies—increased only slightly over 15 years, from 4% in 1999 to 6.5% in 2014 [2]. Part of the cause is the higher outflow among employees of non-Western origin from public organizations than their colleagues of Dutch descent. One popular argument is that employees with a migrant background do not feel at home in these organizations, while another is the lack of transfer possibilities to higher positions in public organizations [6–7]. Binding with the organization they work in is, therefore, considered to be an important objective of the diversity policy of the Dutch public sector.

Around the turn of the millennium, thinking about diversity in the Netherlands began to shift from a target group policy focused on eliminating inequities in the labor market to a business case approach [2, 8]. The business case for diversity is defined as the creation of various insights, knowledge, and skills achieved by taking advantage of differences between people. The idea is that this variety can provide more creativity and better results in teams and organizations [9]. Diversity includes visible and nonvisible differences, such as norms, values, convictions, needs, working styles, and personal characteristics [10] and can become commonplace in the workforce.

However, we know little about the effectiveness of the diversity interventions used within the Dutch public sector [11–13]. This chapter aims to examine how the various interventions influence the binding of employees with an emphasis on the role of the manager and the organizational culture, as both are seen as essential conditions to the identification and binding of employees with an organization [14–17]. The underlying motives for an organization to increase diversity and implement diversity policies are discussed along with the theories on which they are based. These motives are considered to be decisive in the desired effects being achieved within an organization [13, 18].

### 2. Theoretical perspectives

Several theories explain the motives of organizations in conducting diversity policy [18–20]. Ely and Thomas [19] distinguish three diversity perspectives: discrimination and fairness, access and legitimacy, and integration and learning. These perspectives connect diversity with the equality, legitimacy, and productivity, respectively, of the organization.

### 2.1. Diversity perspectives and interventions

marriages from their country of origin. The five largest migrant groups in the Netherlands today are Turkish, Moroccan, Indonesian, German, and Surinamese. About 26% of those 25 years and younger have a migration background [1]. The participation of women in the labor market has also increased in the recent decades. All these changes have repercussions on the composition of the staff in public organizations. Because of its exemplary role as the largest employer of about 1 million employees, the Dutch public sector has devoted an increasing amount of attention to promoting diversity since the 1980s. At that time, the need arose to eliminate the disadvantages faced by minorities in education and labor market and to prevent

The diversity policy of the public sector has long been characterized first and foremost by striving for a workforce composition balanced by gender, ethnic origin, and age [3]. Over the past four decades, numerous diversity interventions have been aimed at the intake, transfer, and retention of employees of non-Dutch origin in public organizations [4–5]. However, these interventions did not significantly increase the proportion of immigrants working in public organizations. Their share of public administration positions—despite all the various initiatives and policies—increased only slightly over 15 years, from 4% in 1999 to 6.5% in 2014 [2]. Part of the cause is the higher outflow among employees of non-Western origin from public organizations than their colleagues of Dutch descent. One popular argument is that employees with a migrant background do not feel at home in these organizations, while another is the lack of transfer possibilities to higher positions in public organizations [6–7]. Binding with the organization they work in is, therefore, considered to be an important objective of the diversity

Around the turn of the millennium, thinking about diversity in the Netherlands began to shift from a target group policy focused on eliminating inequities in the labor market to a business case approach [2, 8]. The business case for diversity is defined as the creation of various insights, knowledge, and skills achieved by taking advantage of differences between people. The idea is that this variety can provide more creativity and better results in teams and organizations [9]. Diversity includes visible and nonvisible differences, such as norms, values, convictions, needs, working styles, and personal characteristics [10] and can become commonplace in the workforce. However, we know little about the effectiveness of the diversity interventions used within the Dutch public sector [11–13]. This chapter aims to examine how the various interventions influence the binding of employees with an emphasis on the role of the manager and the organizational culture, as both are seen as essential conditions to the identification and binding of employees with an organization [14–17]. The underlying motives for an organization to increase diversity and implement diversity policies are discussed along with the theories on which they are based. These motives are considered to be decisive in the desired effects being

Several theories explain the motives of organizations in conducting diversity policy [18–20]. Ely and Thomas [19] distinguish three diversity perspectives: discrimination and fairness,

unequal treatment, prejudice, and discrimination [2].

policy of the Dutch public sector.

146 Organizational Culture

achieved within an organization [13, 18].

2. Theoretical perspectives

The discrimination and fairness perspective, also called the justice perspective, takes as a moral starting point the principle that everyone is equal and must be treated equally. Differences within an organization are mentioned and emphasized as little as possible, and the explicit effect of diversity on the functioning of the organization is downplayed. This perspective focuses on providing equal opportunities for recruitment and promotion and on the suppression of prejudice and discrimination toward minority groups [21]. Organizations adopting this perspective do so out of a moral duty to reflect a just society [22] and to obtain legitimacy and public credibility [23]. The "target group" policy was developed from this perspective on diversity; it involves offering equal opportunities in recruitment and promotion to promote the proportional representation of different sociodemographic groups in organizations [24]. A vivid of an example of this kind of intervention is the use of target figures or quotas to improve the influx, promotion, and retention of target groups such as women, immigrants, and the elderly and young people [25]. This kind of intervention has been part of standard Dutch government policy since 1994.

The access and legitimacy perspective is based primarily on the opportunities that diversity offers for the market, such as gathering knowledge about different groups in society and finding links and ties with them. It is about increasing the legitimacy and recognizability of organizations among certain ethnic groups, based on the realization that the market in which organizations are active is becoming increasingly ethnically diverse. Organizations respond to this development by increasing the diversity of their staff in order to gain better access to and gain legitimacy among various groups in the market; in short, they can better meet the needs of customers and clients [19, 26]. The underlying idea is that people with a given background are more likely to understand and communicate effectively with those who share that background. Organizations aim to benefit by creating more connections between their employees and the public. A typical intervention from the access and legitimacy perspective is the diverse composition of selection teams to recognize the qualities of applicants with different backgrounds [27] and make recruitment policy and its execution as value-free as possible [28]. The focus of the "diverse composition of selection teams" intervention involves the use of both men and women and those with both native and migrant backgrounds in the selection process to increase the recognition of the qualities of diverse talent. This approach can help counter the often-observed tendency of organizations and those who work at them to select candidates who are similar to them or their current employees.

The integration and learning perspective relates to organizational processes. Organizations that operate from this perspective strive for diversity in their workforce on the premise that such differences contribute to creativity, innovation, and better products and services and can thus improve organizational performance [29]. Diversity is seen as an internal source of productivity because the knowledge, insights, and skills of employees from different ethnic or cultural groups are better utilized in practice. Organizations that strive for diversity from the integration and learning perspective might employ these insights into reevaluate and possibly adapt their own work processes, culture, and core tasks. Differences in ethnic background and the various visions that arise from them are regarded as learning moments. Within the public sector, there have been limited interventions based on the integration and learning perspective. Some interventions are trajectories aimed at creating an open culture and explicitly appreciating the diversity in organizations [27].

of human resources management (HRM) policy in an organization [37]. The precise ways that managers exert influence depend on their leadership style. Several styles of and roles in leadership have been reviewed in the literature [38]; this study focuses on transformational leadership. A transformational leader is charismatic, recognizes differences, puts the individual at the center, and increases employee motivation, trust, and satisfaction by bringing people together and changing their thinking [39]. Transformational leadership fits in well with managing diverse groups [40]. Managers who practice this style of leadership are more willing to take risks to solve problems and exploit opportunities proactively. As a result, they have a more forward-looking vision. Due to the focus that a transformational manager places on motivating, inspiring, and developing employees, this leadership style has been characterized

Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

http://dx.doi.org/10.5772/intechopen.81003

149

Leadership style can also have a direct influence on the binding of employees. Managers with a transformational leadership style have a sharper eye for individual characteristics and will use those traits to encourage and motivate employees [38, 40]. Moreover, the emphasis is on finding new ways of working and using different perspectives to find solutions to problems [41]. Because managers implement the day-to-day practice of diversity policy and share the vision behind it, it is reasonable to expect that the relationship between policy choices and outcomes is stronger in the context of a transformational leadership style. The expectation is that the presence of a transformational leadership style will lead to more employee engagement with the organization. It is also supposed that a transformational leadership style will strengthen the relationship between diversity interventions and employee engagement with

The research reported was carried out using a "flash panel" of government employees that is maintained under the authority of the Dutch Ministry of the Interior and Kingdom Relations. Employees who participate in the flash panel are invited once every 2 months by E-mail to participate in a web survey lasting a maximum of 10 minutes. The employees in the flash panel cohort are representative of the workforce of the entire public sector. The flash panel contains respondents' E-mail addresses, sector of employment, position, job grade, gender, year of birth, and education level. The participants in a given survey are selected once every 2 months for research using a regional test from the overall flash panel of 35,000 employees. As a check, each study asks whether the panel member is still working in the sector, which helps keep the panel file up to date. This large-scale survey was conducted from 12 to 26 April 2011; 27,167 employees were invited. Responses were received from 11,557 employees, a response rate of 42.5%. Only respondents who had no missing scores on the variables were used in the research reported here. After removing those respondents, 4310 respondents remained, which is a final response rate of 16%. The relatively high proportion of missing scores was due to the unfamiliarity of the respondents with the diversity interventions presented. How the concepts central to this research

as people-oriented [39].

the organization.

3. Methodology of the research

were operationalized is detailed below.

#### 2.2. The relationship between the diversity interventions and the binding of employees

Both the access and legitimacy and the integration and learning perspectives regard diversity as adding value to organizational performance. From the discrimination and fairness perspective, such differences do not matter, and the starting point is that employees must adapt to the organization, with the risk that employees feel unappreciated or disrespected [19]. It is, therefore, to be expected that interventions related to the access and legitimacy and the integration and learning perspectives will have a more favorable effect on the binding of employees with the organization than interventions related to the discrimination and fairness perspective.

### 2.3. Influence of inclusive organizational culture

An inclusive organizational culture means that all employees feel involved in the organization, regardless of age, gender, or cultural background; they are valued for who they are [30]. The inclusiveness of the organizational culture has been associated with positive work-related outcomes, such as greater well-being in teams, higher employee satisfaction, and more productivity and confidence in the workplace [31]. An organizational culture in which there is no openness and appreciation of differences can lead to a decline in employee involvement in and motivation for work and the organization itself [32].

In addition to the fact that employee ties are connected with the organizational outcomes noted above, there is evidence in the literature about a direct influence of the inclusiveness of an organization's culture on involvement and retention among its employees. It has been shown that openness and appreciation for diversity in the organization are accompanied by more involvement among employees [33]. Specifically, it appears that affective involvement is related to inclusiveness within the organization [34]. In addition, we know from the research that an inclusive organizational culture can limit the departure and intention to depart of employees [35]; similarly, an open organizational culture has been reported to have a positive influence on the binding of employees with the organization [10, 36]. Thus, the inclusiveness of the organizational culture can have a mediating role in the relationship between the policy interventions and the binding of employees.

#### 2.4. Influence of leadership

In the literature, the role of managers and leaders is receiving increased attention in connection with employee performance in both public and private organizations. In addition to influencing the attitude and behavior of employees, they play a significant role in the implementation of human resources management (HRM) policy in an organization [37]. The precise ways that managers exert influence depend on their leadership style. Several styles of and roles in leadership have been reviewed in the literature [38]; this study focuses on transformational leadership. A transformational leader is charismatic, recognizes differences, puts the individual at the center, and increases employee motivation, trust, and satisfaction by bringing people together and changing their thinking [39]. Transformational leadership fits in well with managing diverse groups [40]. Managers who practice this style of leadership are more willing to take risks to solve problems and exploit opportunities proactively. As a result, they have a more forward-looking vision. Due to the focus that a transformational manager places on motivating, inspiring, and developing employees, this leadership style has been characterized as people-oriented [39].

Leadership style can also have a direct influence on the binding of employees. Managers with a transformational leadership style have a sharper eye for individual characteristics and will use those traits to encourage and motivate employees [38, 40]. Moreover, the emphasis is on finding new ways of working and using different perspectives to find solutions to problems [41]. Because managers implement the day-to-day practice of diversity policy and share the vision behind it, it is reasonable to expect that the relationship between policy choices and outcomes is stronger in the context of a transformational leadership style. The expectation is that the presence of a transformational leadership style will lead to more employee engagement with the organization. It is also supposed that a transformational leadership style will strengthen the relationship between diversity interventions and employee engagement with the organization.

### 3. Methodology of the research

integration and learning perspective might employ these insights into reevaluate and possibly adapt their own work processes, culture, and core tasks. Differences in ethnic background and the various visions that arise from them are regarded as learning moments. Within the public sector, there have been limited interventions based on the integration and learning perspective. Some interventions are trajectories aimed at creating an open culture and explicitly appreciat-

2.2. The relationship between the diversity interventions and the binding of employees

Both the access and legitimacy and the integration and learning perspectives regard diversity as adding value to organizational performance. From the discrimination and fairness perspective, such differences do not matter, and the starting point is that employees must adapt to the organization, with the risk that employees feel unappreciated or disrespected [19]. It is, therefore, to be expected that interventions related to the access and legitimacy and the integration and learning perspectives will have a more favorable effect on the binding of employees with the organization than interventions related to the discrimination and fair-

An inclusive organizational culture means that all employees feel involved in the organization, regardless of age, gender, or cultural background; they are valued for who they are [30]. The inclusiveness of the organizational culture has been associated with positive work-related outcomes, such as greater well-being in teams, higher employee satisfaction, and more productivity and confidence in the workplace [31]. An organizational culture in which there is no openness and appreciation of differences can lead to a decline in employee involvement in and

In addition to the fact that employee ties are connected with the organizational outcomes noted above, there is evidence in the literature about a direct influence of the inclusiveness of an organization's culture on involvement and retention among its employees. It has been shown that openness and appreciation for diversity in the organization are accompanied by more involvement among employees [33]. Specifically, it appears that affective involvement is related to inclusiveness within the organization [34]. In addition, we know from the research that an inclusive organizational culture can limit the departure and intention to depart of employees [35]; similarly, an open organizational culture has been reported to have a positive influence on the binding of employees with the organization [10, 36]. Thus, the inclusiveness of the organizational culture can have a mediating role in the relationship between the policy

In the literature, the role of managers and leaders is receiving increased attention in connection with employee performance in both public and private organizations. In addition to influencing the attitude and behavior of employees, they play a significant role in the implementation

ing the diversity in organizations [27].

2.3. Influence of inclusive organizational culture

motivation for work and the organization itself [32].

interventions and the binding of employees.

2.4. Influence of leadership

ness perspective.

148 Organizational Culture

The research reported was carried out using a "flash panel" of government employees that is maintained under the authority of the Dutch Ministry of the Interior and Kingdom Relations. Employees who participate in the flash panel are invited once every 2 months by E-mail to participate in a web survey lasting a maximum of 10 minutes. The employees in the flash panel cohort are representative of the workforce of the entire public sector. The flash panel contains respondents' E-mail addresses, sector of employment, position, job grade, gender, year of birth, and education level. The participants in a given survey are selected once every 2 months for research using a regional test from the overall flash panel of 35,000 employees. As a check, each study asks whether the panel member is still working in the sector, which helps keep the panel file up to date. This large-scale survey was conducted from 12 to 26 April 2011; 27,167 employees were invited. Responses were received from 11,557 employees, a response rate of 42.5%. Only respondents who had no missing scores on the variables were used in the research reported here. After removing those respondents, 4310 respondents remained, which is a final response rate of 16%. The relatively high proportion of missing scores was due to the unfamiliarity of the respondents with the diversity interventions presented. How the concepts central to this research were operationalized is detailed below.

#### 3.1. Diversity interventions

Different perspectives on diversity can favor varied interventions. For this reason, the three most used interventions in the various diversity perspectives were presented to the respondents (see Table 1).

(1) "Fully disagree" and (5) "Fully agree"; the higher the scores, the higher the commitment

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The departure intent of employees is an important outcome to measure because it reflects whether employees are thinking of leaving an organization. Employee departure intentions were measured by presenting them with the following statement: "I intend to look for work at another organization in the coming year" [25]. The respondent used a five-point Likert scale to indicate the extent he or she agreed with the statement was (1) "Strongly agree" and (5) "Strongly disagree." To include this variable in the analysis, a dummy was subsequently made, with the original scores (1) "Strongly agree" and (2) "Somewhat agree" indicating that the respondent was inclined to depart and the other scores indicating that the respondent was not inclined to leave. The dummy variables were 1 = not inclined to leave and 0 = inclined to leave; as to binding, 1 means a high connection with the organization and 0 means a low

To measure the inclusiveness of an organization's culture, an existing set of six previously unvalidated questions was used by the national government in employee satisfaction surveys to gain an insight into the degree of perceived inclusiveness and social safety among employees. These six questions were derived from five key questions posed by the oil company Shell to determine the degree of inclusiveness their employees felt [45]. Because these issues relate to the extent to which employees feel valued and secure within their organization, we speak here of inclusive organizational culture, which, after all, involves the combination of

The six statements in Table 2 about inclusive organizational culture (IC) were presented to the

In the original questionnaire, a five-point Likert scale was used for responses ranging from (1) "Strongly agree" to (5) "Strongly disagree." In order to better interpret the output of the analyses, the scores have been recoded to (1) "Fully disagree" and (5) "Fully agree." The higher the scores, the more the organizational culture was perceived as inclusive. The Cronbach's α of

IC3 My organization has a working environment, where different ideas and perspectives are valued

of employees. The Cronbach's α of this scale was 0.91.

connection with the organization.

3.3. Inclusive organizational culture

safety [46–47] and appreciation [48].

IC1 Where I work, I am treated with respect

IC4 My organization is free of discrimination IC5 My organization is free of intimidation

Table 2. Statements for inclusive organizational culture (IC).

IC2 I can openly express my opinion without fear of negative consequences

IC6 The decisions made by managers about employees are fair

respondents.

this scale was 0.90.

The first intervention can be placed under the discrimination and fairness (D&F) perspective because they aim to increase members of minority groups in the organization. The second intervention arises from the access and legitimacy (A&L) perspective and is designed to help the organization better reach specific target groups. The last intervention refers to the integration and learning (I&L) perspective, where learning about diversity is central.

Respondents were asked to indicate whether an intervention was present in their organization by using one of three answer options: (1) "Yes," (2) "No," and (3) "Do not know." Answers of "Do not know" are not included in the analysis below. They are classified as missing because no conclusions can be drawn about a group that does not know which interventions are used by their organization. Subsequently, dummies were created for each of the interventions: 0 = not present and 1 = present.

#### 3.2. Binding

To measure the binding of employees within an organization, questions were asked to respondents about affective commitment and retention of employees. Affective involvement is an emotional bond that the employee has with his or her organization and is formed by personal and structural characteristics and work experience [42]. In addition, employees who identify themselves with the organization are more involved in the organization and motivated to commit to achieving organizational goals [43–44]. To measure affective commitment, a validated scale from previous research was used [44]. It consists of the following three statements: (1) "I feel like part of the family in my organization," (2) "My organization has a great deal of personal meaning for me," and (3) "I feel a strong sense of belonging to my organization." Respondents indicated using a five-point Likert scale the extent to which they agreed with each statement, with being (1) "Strongly agree" and (5) "Strongly disagree." To better interpret the output of the analyses, the scores have been recoded to


Table 1. Diversity interventions and perspectives.

(1) "Fully disagree" and (5) "Fully agree"; the higher the scores, the higher the commitment of employees. The Cronbach's α of this scale was 0.91.

The departure intent of employees is an important outcome to measure because it reflects whether employees are thinking of leaving an organization. Employee departure intentions were measured by presenting them with the following statement: "I intend to look for work at another organization in the coming year" [25]. The respondent used a five-point Likert scale to indicate the extent he or she agreed with the statement was (1) "Strongly agree" and (5) "Strongly disagree." To include this variable in the analysis, a dummy was subsequently made, with the original scores (1) "Strongly agree" and (2) "Somewhat agree" indicating that the respondent was inclined to depart and the other scores indicating that the respondent was not inclined to leave. The dummy variables were 1 = not inclined to leave and 0 = inclined to leave; as to binding, 1 means a high connection with the organization and 0 means a low connection with the organization.

### 3.3. Inclusive organizational culture

3.1. Diversity interventions

dents (see Table 1).

150 Organizational Culture

present and 1 = present.

3.2. Binding

backgrounds.

Table 1. Diversity interventions and perspectives.

Different perspectives on diversity can favor varied interventions. For this reason, the three most used interventions in the various diversity perspectives were presented to the respon-

The first intervention can be placed under the discrimination and fairness (D&F) perspective because they aim to increase members of minority groups in the organization. The second intervention arises from the access and legitimacy (A&L) perspective and is designed to help the organization better reach specific target groups. The last intervention refers to the integra-

Respondents were asked to indicate whether an intervention was present in their organization by using one of three answer options: (1) "Yes," (2) "No," and (3) "Do not know." Answers of "Do not know" are not included in the analysis below. They are classified as missing because no conclusions can be drawn about a group that does not know which interventions are used by their organization. Subsequently, dummies were created for each of the interventions: 0 = not

To measure the binding of employees within an organization, questions were asked to respondents about affective commitment and retention of employees. Affective involvement is an emotional bond that the employee has with his or her organization and is formed by personal and structural characteristics and work experience [42]. In addition, employees who identify themselves with the organization are more involved in the organization and motivated to commit to achieving organizational goals [43–44]. To measure affective commitment, a validated scale from previous research was used [44]. It consists of the following three statements: (1) "I feel like part of the family in my organization," (2) "My organization has a great deal of personal meaning for me," and (3) "I feel a strong sense of belonging to my organization." Respondents indicated using a five-point Likert scale the extent to which they agreed with each statement, with being (1) "Strongly agree" and (5) "Strongly disagree." To better interpret the output of the analyses, the scores have been recoded to

Diversity interventions Diversity

3 Trajectories aimed at creating an open culture and the appreciation of diversity. x

1 Target figures regarding the inflow and throughflow of specific groups (such as men or women, elderly or young people, or immigrants or autochthonous people) in the organization.

2 The diverse composition of selection teams to recognize qualities in applicants with different

perspectives D&F A&L I&L

x

x

tion and learning (I&L) perspective, where learning about diversity is central.

To measure the inclusiveness of an organization's culture, an existing set of six previously unvalidated questions was used by the national government in employee satisfaction surveys to gain an insight into the degree of perceived inclusiveness and social safety among employees. These six questions were derived from five key questions posed by the oil company Shell to determine the degree of inclusiveness their employees felt [45]. Because these issues relate to the extent to which employees feel valued and secure within their organization, we speak here of inclusive organizational culture, which, after all, involves the combination of safety [46–47] and appreciation [48].

The six statements in Table 2 about inclusive organizational culture (IC) were presented to the respondents.

In the original questionnaire, a five-point Likert scale was used for responses ranging from (1) "Strongly agree" to (5) "Strongly disagree." In order to better interpret the output of the analyses, the scores have been recoded to (1) "Fully disagree" and (5) "Fully agree." The higher the scores, the more the organizational culture was perceived as inclusive. The Cronbach's α of this scale was 0.90.


Table 2. Statements for inclusive organizational culture (IC).


TL12 My leader pays attention to each individual's need for achievement and growth by acting as a coach or a mentor

Table 3. Propositions for transformational leadership (TL).

#### 3.4. Transformational leadership

Respondents were asked about the direct supervisor's leadership style. The items on transformational leadership (TL) are derived from the operationalization of Bass et al. [41]. Respondents indicated on a five-point Likert scale the extent to which they agreed with each statement, with being (1) "Strongly agree" and (5) "Strongly disagree." The propositions are provided in Table 3.

4.1. Structural equation modeling analysis

Correlations are significant at the .01 level (2-tailed). \*\*Correlations are significant at the .05 level (2-tailed).

\*

1. Target figures — 0.32 0.47 1

2. Diverse selection teams — 0.22 0.41 0.34\*\* 1

3. Routes for open culture — 0.37 0.48 0.33\*\* 0.36\*\* 1

4. Inclusive culture 0.90 3.58 0.92 0.02 0.15\*\* 0.22\*\* 1

5. Affective commitment 0.91 3.98 0.98 0.08\*\* 0.15\*\* 0.21\*\* 0.49\*\* 1

6. Retention — 3.8 1.37 0.13 0.05\*\* 0.11\*\* 0.23\*\* 0.29\*\* 1

Table 4. Cronbach's αs, averages (M), standard deviations (SDs), and Pearson correlations.

7. Transformational leadership 0.96 3.41 0.95 0.09\*\* 0.19\*\* 0.23\*\* 0.26\*\* 0.47\*\* 0.25\*\* 1

8. Ethnicity — 0.08 0.27 0.01 0.01 0.01 0.03\*\* 0.02\* 0.03\*\* 0.02 1 9. Gender — 0.41 0.49 0.08\*\* 0.03\* 0.06\*\* 0.00 0.00 0.02 0.00 0.03\*\* <sup>1</sup>

models with the help of confirmatory factor analysis (CFA).

goodness-of-fit statistics: χ<sup>2</sup> = 7909.50, df = 291, p < 0.00, χ<sup>2</sup>

second model showed a better fit, with χ<sup>2</sup> = 4288.16, df = 286, p < 0.00, χ<sup>2</sup>

goodness-of-fit measures: χ<sup>2</sup> = 3701.17, df = 240, p < 0.00, χ<sup>2</sup>

they also fulfilled the fitness requirements of a model [50].

Using AMOS, structural equation modeling (SEM) analysis was applied to the data. SEM analysis is a quantitative statistical method that combines two statistical analyses, path analysis and factor analysis. The scales constructed for organizational culture, affective commitment, or transformational leadership were not used directly; instead, the variables were re-estimated in measurement

α M SD 1 2 3 4 5 6 7 89

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Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

The first model with affective commitment as an outcome measure showed the following

(CFI) = 0.90; and root mean squared error of approximation (RMSEA) = 0.08. Because of the high N, χ<sup>2</sup> was not a good measure to determine the fitness of the model. The CFI and RMSEA values show the extent to which the model fits the data [49]. The CFI did not meet the requirement of a value of > 0.95, and the RMSEA did not meet the threshold value of <0.06 [49, 50]. As a result, it could be argued that improvements could still be made in the model. For example, some interference variances were found to correlate with one another, indicating that the relevant items had unexplained variance in common. For the leadership scale, this was the case for the variances of the items belonging to the intellectual stimulation dimension (items TL7, TL8, and TL9) and two items of the individualized consideration dimension (items TL11 and TL12). In addition, two items (IC4 and IC5) of the inclusive culture scale had unexplained variances in common. This

RMSEA = 0.06. The model with retention as the dependent variable showed the following

The CFA conducted for the organizational culture, transformational leadership, and affective engagement variables showed that all those variables contributed significantly (p < 0.00) and

/df = 27.18; comparative fit index

/df = 14.99, CFI = 0.95,

/df = 15.42, CFI = 0.95, RMSEA = 0.06;

The Cronbach's α of this scale was 0.96. Finally, two control variables were included in the study: the ethnic origin and gender of the respondent.

### 4. Results

The SPSS and AMOS programs were used for the statistical analyses. The Cronbach's αs, averages, standard deviations, and correlations of the research variables are presented in Table 4. The "trajectories for an open culture" intervention was the most frequently observed by the respondents. The "diverse composition of selection teams" and "projects for an open culture" diversity interventions correlated positively with organizational culture. Organizational culture correlated positively with the commitment of employees. From the correlations, it can also be argued that transformational leadership is related to the two policy interventions (diverse selection teams, routes for open culture), the organizational culture, and the binding of employees (retention, affective commitment). The scales of transformational leadership and organizational culture appear to correlate highly (0.66), which can partly be attributed to the items of transformational leadership that relates to diversity (TL7, TL8, and TL10).

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Correlations are significant at the .01 level (2-tailed).

\*\*Correlations are significant at the .05 level (2-tailed).

Table 4. Cronbach's αs, averages (M), standard deviations (SDs), and Pearson correlations.

#### 4.1. Structural equation modeling analysis

3.4. Transformational leadership

study: the ethnic origin and gender of the respondent.

TL1 My leader considers my needs over his or her own needs

approaching old situations in new ways

TL11 My leader helps employees to develop their strengths

Table 3. Propositions for transformational leadership (TL).

TL3 My leader is consistent in conduct with underlying ethics, principles, and values TL4 My leader emphasizes the importance of having a collective sense of mission

TL6 My leader behaves in ways that motivate by providing meaning and challenge to employees' work TL7 My leader stimulates being innovative and creative by questioning assumptions, reframing problems, and

TL5 My leader behaves in ways that stimulate individual and team spirit

TL8 My leader seeks different points of view when solving problems TL9 My leader suggests new ways of working and different perspectives TL10 My leader recognizes individual differences in terms of needs and desires

provided in Table 3.

TL2 I trust my leader

152 Organizational Culture

4. Results

Respondents were asked about the direct supervisor's leadership style. The items on transformational leadership (TL) are derived from the operationalization of Bass et al. [41]. Respondents indicated on a five-point Likert scale the extent to which they agreed with each statement, with being (1) "Strongly agree" and (5) "Strongly disagree." The propositions are

TL12 My leader pays attention to each individual's need for achievement and growth by acting as a coach or a mentor

The Cronbach's α of this scale was 0.96. Finally, two control variables were included in the

The SPSS and AMOS programs were used for the statistical analyses. The Cronbach's αs, averages, standard deviations, and correlations of the research variables are presented in Table 4. The "trajectories for an open culture" intervention was the most frequently observed by the respondents. The "diverse composition of selection teams" and "projects for an open culture" diversity interventions correlated positively with organizational culture. Organizational culture correlated positively with the commitment of employees. From the correlations, it can also be argued that transformational leadership is related to the two policy interventions (diverse selection teams, routes for open culture), the organizational culture, and the binding of employees (retention, affective commitment). The scales of transformational leadership and organizational culture appear to correlate highly (0.66), which can partly be attributed to the

items of transformational leadership that relates to diversity (TL7, TL8, and TL10).

Using AMOS, structural equation modeling (SEM) analysis was applied to the data. SEM analysis is a quantitative statistical method that combines two statistical analyses, path analysis and factor analysis. The scales constructed for organizational culture, affective commitment, or transformational leadership were not used directly; instead, the variables were re-estimated in measurement models with the help of confirmatory factor analysis (CFA).

The first model with affective commitment as an outcome measure showed the following goodness-of-fit statistics: χ<sup>2</sup> = 7909.50, df = 291, p < 0.00, χ<sup>2</sup> /df = 27.18; comparative fit index (CFI) = 0.90; and root mean squared error of approximation (RMSEA) = 0.08. Because of the high N, χ<sup>2</sup> was not a good measure to determine the fitness of the model. The CFI and RMSEA values show the extent to which the model fits the data [49]. The CFI did not meet the requirement of a value of > 0.95, and the RMSEA did not meet the threshold value of <0.06 [49, 50]. As a result, it could be argued that improvements could still be made in the model. For example, some interference variances were found to correlate with one another, indicating that the relevant items had unexplained variance in common. For the leadership scale, this was the case for the variances of the items belonging to the intellectual stimulation dimension (items TL7, TL8, and TL9) and two items of the individualized consideration dimension (items TL11 and TL12). In addition, two items (IC4 and IC5) of the inclusive culture scale had unexplained variances in common. This second model showed a better fit, with χ<sup>2</sup> = 4288.16, df = 286, p < 0.00, χ<sup>2</sup> /df = 14.99, CFI = 0.95, RMSEA = 0.06. The model with retention as the dependent variable showed the following goodness-of-fit measures: χ<sup>2</sup> = 3701.17, df = 240, p < 0.00, χ<sup>2</sup> /df = 15.42, CFI = 0.95, RMSEA = 0.06; they also fulfilled the fitness requirements of a model [50].

The CFA conducted for the organizational culture, transformational leadership, and affective engagement variables showed that all those variables contributed significantly (p < 0.00) and

that all factor loads were above 0.5. The factor loads and standardized path coefficients representing the strength of the relationship between the variables are shown in Table 5. The results for the model with retention as the dependent variable are presented in Table 6.

Standardized regression effects

IC1 Inclusive culture 0.81NA IC2 Inclusive culture 0.87\*\*\* IC3 Inclusive culture 0.85\*\*\* IC4 Inclusive culture 0.55\*\*\* IC5 Inclusive culture 0.73\*\*\* IC6 Inclusive culture 0.81\*\*\* TL1 Transformational leadership 0.68\*\*\* TL2 Transformational leadership 0.88\*\*\* TL3 Transformational leadership 0.85\*\*\* TL4 Transformational leadership 0.72\*\*\* TL5 Transformational leadership 0.88\*\*\* TL6 Transformational leadership 0.84\*\*\* TL7 Transformational leadership 0.79\*\*\* TL8 Transformational leadership 0.82\*\*\* TL9 Transformational leadership 0.72\*\*\* TL10 Transformational leadership 0.84\*\*\* TL11 Transformational leadership 0.82\*\*\* TL12 Transformational leadership 0.83NA B1 Affective commitment 0.81NA B2 Affective commitment 0.90\*\*\* B3 Affective commitment 0.93\*\*\*

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Inclusive culture Target figures �0.03\*\* Inclusive culture Routes for open culture 0.08\*\*\* Inclusive culture Diverse selection teams 0.02 Affective commitment Target figures 0.03\* Affective commitment Routes for open culture 0.05\*\*\* Affective commitment Diverse selection teams 0.03 Affective commitment Inclusive culture 0.39\*\*\* Affective commitment Gender (female) 0.01 Affective commitment Ethnic origin (minorities) �0.01 Affective commitment Transformational leadership 0.21\*\*\* Inclusive culture Transformational leadership 0.72\*\*\* Inclusive culture Gender (female) �0.02 Inclusive culture Ethnic origin (minorities) �0.02

Measurement paths

Structural paths

The policy "target figures" intervention (discrimination and fairness perspective) had a very weak negative relationship with the entrenched inclusive culture (β = 0.03, p < 0.01). One explanation may be that the use of target figures underlines differences in organizations and can thus increase categorization [19]. This can limit the degree to which an organization's culture is perceived as inclusive and, as a result, the extent to which people feel themselves involved in the organization. The "trajectories aimed at creating an open culture and appreciation of diversity" intervention (integration and learning perspective) had a weak positive effect (β = 0.08, p < 0.00) on organizational culture, but the "diverse composition of selection teams" policy intervention (access and legitimacy perspective) did not have a significant relationship with the organizational culture in this model. Based on these findings, it can be stated that there is a negative relationship between the "target figures" intervention and an inclusive organizational culture and a positive relationship between the "creating an open culture" intervention and an inclusive organizational culture.

An inclusive culture appears to play an important role in increasing employees' binding with the organization; it has a direct positive influence on the affective commitment (β = 0.39, p < 0.00) and a positive influence on the retention (β = 0.18, p < 0.00) of employees. As employees experience an organizational culture in which they feel valued and secure within the organization, the binding between them and the organization increases. These results show that an inclusive organizational culture is an important factor in employee commitment.

The "target figures" intervention had a direct but a very weak positive effect on the affective commitment of employees (β = 0.03, p < 0.05) and a very weak negative indirect effect (β = 0.01, p < 0.01) through an inclusive organizational culture. The reason for the direct positive effect of target figures on affective commitment is not immediately obvious. Perhaps the pursuit of targets has a positive effect at least in the organization, but the elaboration of the policy was ultimately not significant because this policy negatively affected the inclusiveness of the organizational culture. The "trajectories aimed at creating an open culture and appreciation of diversity" intervention (integration and learning perspective) had a directly weak positive effect on the affective commitment of employees (β = 0.05, p < 0.00). For this intervention, a weak indirectly significant positive effect via organizational culture applied to the affective commitment of employees (β = 0.03, p < 0.00).

In addition, the "diverse composition of selection teams" policy intervention (access and legitimacy perspective) had no direct or indirect effect on the affective commitment of employees. An inclusive culture, therefore, appears to have a mediating role in the relationship between policy interventions and employee engagement. This only applies to the "target figures" and "creating an open culture" interventions and the affective commitment of employees.

The results of the SEM analysis (see Table 6) show that none of the interventions have a significant direct effect on the retention of employees. The effect of these interventions on retention is likely explained entirely by their contribution to the inclusiveness of the

that all factor loads were above 0.5. The factor loads and standardized path coefficients representing the strength of the relationship between the variables are shown in Table 5. The results for the model with retention as the dependent variable are presented in Table 6.

The policy "target figures" intervention (discrimination and fairness perspective) had a very weak negative relationship with the entrenched inclusive culture (β = 0.03, p < 0.01). One explanation may be that the use of target figures underlines differences in organizations and can thus increase categorization [19]. This can limit the degree to which an organization's culture is perceived as inclusive and, as a result, the extent to which people feel themselves involved in the organization. The "trajectories aimed at creating an open culture and appreciation of diversity" intervention (integration and learning perspective) had a weak positive effect (β = 0.08, p < 0.00) on organizational culture, but the "diverse composition of selection teams" policy intervention (access and legitimacy perspective) did not have a significant relationship with the organizational culture in this model. Based on these findings, it can be stated that there is a negative relationship between the "target figures" intervention and an inclusive organizational culture and a positive relationship between the "creating an open

An inclusive culture appears to play an important role in increasing employees' binding with the organization; it has a direct positive influence on the affective commitment (β = 0.39, p < 0.00) and a positive influence on the retention (β = 0.18, p < 0.00) of employees. As employees experience an organizational culture in which they feel valued and secure within the organization, the binding between them and the organization increases. These results show that an inclusive organiza-

The "target figures" intervention had a direct but a very weak positive effect on the affective commitment of employees (β = 0.03, p < 0.05) and a very weak negative indirect effect (β = 0.01, p < 0.01) through an inclusive organizational culture. The reason for the direct positive effect of target figures on affective commitment is not immediately obvious. Perhaps the pursuit of targets has a positive effect at least in the organization, but the elaboration of the policy was ultimately not significant because this policy negatively affected the inclusiveness of the organizational culture. The "trajectories aimed at creating an open culture and appreciation of diversity" intervention (integration and learning perspective) had a directly weak positive effect on the affective commitment of employees (β = 0.05, p < 0.00). For this intervention, a weak indirectly significant positive effect via organizational culture

In addition, the "diverse composition of selection teams" policy intervention (access and legitimacy perspective) had no direct or indirect effect on the affective commitment of employees. An inclusive culture, therefore, appears to have a mediating role in the relationship between policy interventions and employee engagement. This only applies to the "target figures" and "creating

The results of the SEM analysis (see Table 6) show that none of the interventions have a significant direct effect on the retention of employees. The effect of these interventions on retention is likely explained entirely by their contribution to the inclusiveness of the

culture" intervention and an inclusive organizational culture.

154 Organizational Culture

tional culture is an important factor in employee commitment.

applied to the affective commitment of employees (β = 0.03, p < 0.00).

an open culture" interventions and the affective commitment of employees.



Table 5. Results of SEM analyses of affective commitment.


organizational culture. The "target figures" intervention appears to have a very weak negative indirect effect through the inclusiveness of the organizational culture on the retention of employees (β = �0.01, p < 0.01). This means that the "target figures" intervention reduces the extent to which employees experience an inclusive culture, as a result of which the retention of employees is somewhat reduced. By contrast, the "trajectories aimed at creating an open culture" intervention has a very weak positive indirect effect, through the inclusiveness of the culture, on retention (β = 0.01, p < 0.00). This intervention promotes the extent to which employees experience an inclusive culture and contributes to the retention of employees.

p < 0.05; \*\*p < 0.01; \*\*\*p < 0.00; NA = not applicable (set parameter).

Retention Inclusive culture Target figures �0.01\*\* Retention Inclusive culture Routes for open culture 0.01\*\*\* Retention Inclusive culture Diverse selection teams 0.0 Retention Inclusive culture Transformational leadership 0.13\*\*\* R<sup>2</sup> Inclusive culture 0.52 R<sup>2</sup> Retention 0.14

Inclusive culture Diverse selection team 0.02 Retention Target figures 0.0 Retention Routes for open culture 0.01 Retention Diverse selection teams �0.0 Retention Inclusive culture 0.18\*\*\* Retention Gender (female) �0.05\*\*\* Retention Ethnic origin (minorities) �0.05\*\*\* Retention Transformational leadership 0.21\*\*\* Inclusive culture Transformational leadership 0.72\*\*\* Inclusive culture Gender (female) �0.02 Inclusive culture Ethnic origin (minorities) �0.02

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Transformational leadership appears to be important for the binding of employees. The results showed that transformational leadership is strongly and positively connected with the affective commitment of employees (β = 0.21, p < 0.00) and strongly positively related to their retention (β = 0.21, p < 0.00). Moreover, a transformational leadership style is closely related to the inclusiveness of the organizational culture (β = 0.72, p < 0.00), and the results also showed a significant indirect effect of transformational leadership through inclusive culture on the affective commitment (β = 0.28, p < 0.00) and retention (β = 0.13, p < 0.00) of employees. This, again,

emphasizes the importance of an inclusive organizational culture.

Standardized regression effect

Indirect effects

Note: N = 4.310; \*

Table 6. Result SEM analyses of retention.


Table 6. Result SEM analyses of retention.

Standardized regression effect

Table 5. Results of SEM analyses of affective commitment.

Standardized regression effects

Indirect effects

156 Organizational Culture

IC1 Inclusive culture 0.81NA IC2 Inclusive culture 0.87\*\*\* IC3 Inclusive culture 0.85\*\*\* IC4 Inclusive culture 0.55\*\*\* IC5 Inclusive culture 0.73\*\*\* IC6 Inclusive culture 0.81\*\*\* TL1 Transformational leadership 0.68\*\*\* TL2 Transformational leadership 0.88\*\*\* TL3 Transformational leadership 0.85\*\*\* TL4 Transformational leadership 0.72\*\*\* TL5 Transformational leadership 0.88\*\*\* TL6 Transformational leadership 0.84\*\*\* TL7 Transformational leadership 0.79\*\*\* TL8 Transformational leadership 0.82\*\*\* TL9 Transformational leadership 0.72\*\*\* TL10 Transformational leadership 0.84\*\*\* TL11 Transformational leadership 0.82\*\*\* TL12 Transformational leadership 0.83NA

Affective commitment Inclusive culture Target figures �0.01\*\* Affective commitment Inclusive culture Routes for open culture 0.03\*\*\* Affective commitment Inclusive culture Diverse selection teams 0.01 Affective commitment Inclusive culture Transformational leadership 0.28\*\*\* R<sup>2</sup> Inclusive culture 0.52 R<sup>2</sup> Affective commitment 0.32

p < 0.05; \*\*p < 0.01; \*\*\*p < 0.00; NA = not applicable (set parameter).

Inclusive culture Target figures �0.03\*\* Inclusive culture Routes for open culture 0.08\*\*\*

Measurement paths

Note: N = 4.310; \*

Structural paths

organizational culture. The "target figures" intervention appears to have a very weak negative indirect effect through the inclusiveness of the organizational culture on the retention of employees (β = �0.01, p < 0.01). This means that the "target figures" intervention reduces the extent to which employees experience an inclusive culture, as a result of which the retention of employees is somewhat reduced. By contrast, the "trajectories aimed at creating an open culture" intervention has a very weak positive indirect effect, through the inclusiveness of the culture, on retention (β = 0.01, p < 0.00). This intervention promotes the extent to which employees experience an inclusive culture and contributes to the retention of employees.

Transformational leadership appears to be important for the binding of employees. The results showed that transformational leadership is strongly and positively connected with the affective commitment of employees (β = 0.21, p < 0.00) and strongly positively related to their retention (β = 0.21, p < 0.00). Moreover, a transformational leadership style is closely related to the inclusiveness of the organizational culture (β = 0.72, p < 0.00), and the results also showed a significant indirect effect of transformational leadership through inclusive culture on the affective commitment (β = 0.28, p < 0.00) and retention (β = 0.13, p < 0.00) of employees. This, again, emphasizes the importance of an inclusive organizational culture.

To focus more directly on the influence of transformational leadership, multivariate analyses were performed in SPSS, with affective commitment and retention as dependent variables. Tables 7 and 8 present the results of the multivariate analysis of affective commitment and retention, respectively. In both tables, transformational leadership in the second model has been added to the analysis. To measure the interaction effect between diversity interventions and transformational leadership, interaction variables were created in the third model.

Table 7 confirms that transformational leadership has a strong positive effect on commitment (β = 0.457, p < 0.001). This means that the more a manager uses a transformational leadership style, the higher the commitment of employees. It can also be concluded that the influence of the intervention has weakened "diverse selection teams" (β = 0.033, p < 0.005) and "trajectories for creating an open culture" (β = 0.081, p < 0.001) by the inclusion of transformational leadership. Furthermore, Model 3 shows that there is only a weak and negative interaction effect between the transformational leadership and the intervention pathways (β = 0.039, p < 0.05). This means that the effect of the diversity interventions on employee commitment is not strengthened, as was expected, but in fact, it becomes weaker as managers show more transformational leadership.


Table 8 confirms that as transformational leadership increases, employees will be less inclined to leave the organization. As with commitment, the manager plays a crucial role in employee departure intention. Model 2 also shows that the influence of the "diverse selection teams" and "trajectories for the creation of an open culture" interventions disappears through the inclu-

Table 8. Influence of interventions and transformational leadership on departure intent (logistic regression).

Interaction between TL and trajectories 0.005 0.013 0.995 Constant 1.376\*\*\* 1099 3.901 1.480\*\*\* 1110 4.374 1.487\*\*\* 1093 4.425

R<sup>2</sup> 0.02 0.11 0.12 N 4.310 4.310 4.310

Model 1 Model 2 Model 3

β Wald Exp

(B)

http://dx.doi.org/10.5772/intechopen.81003

β Wald Exp

0.052 1.301 0.949

(β)

159

β Wald Exp

(B)

Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

Ethnic origin 0.121\*\*\* 12.949 0.886 0.113\*\* 10.446 0.893 0.113\*\* 10.297 0.894 Gender 0.084\* 5.036 0.919 0.092\* 5.537 0.912 0.092\* 5.559 0.912 Preferential policy 0.001 0.001 0.999 0.001 0.000 1.001 0.002 0.001 0.998 Target figures 0.057 1.068 0.945 0.052 0.798 0.950 0.052 0.824 0.949 Specific groups 0.002 0.001 1.002 0.044 0.645 0.957 0.052 0.958 0.949 Diverse selection teams 0.100\* 4.849 1.113 0.047 0.849 1.048 0.043 0.731 1.044 Networks 0.016 0.092 0.985 0.008 0.023 1.008 0.005 0.010 1.005 Trajectories 0.211\*\*\* 17.038 1.234 0.081 2.286 1.084 0.083 2.399 1.087 Training courses 0.026 0.263 1.026 0.004 0.005 1.004 0.003 0.004 1.003 Transformational leadership 0.599\*\*\* 261.250 1.820 0.587\*\*\* 207.811 1.799

First, diversity interventions based on the legitimacy and creativity perspective promote an inclusive organizational culture and are therefore more effective for the binding of employees to the organization than interventions based on a target group policy. The "creating an open culture" intervention appears to strengthen the binding of employees with the organization. This intervention focuses on differences between employees and seeks to influence the

sion of transformational leadership.

p < 0.05; \*\*p < 0.01; \*\*\*p < 0.001.

Interaction between TL and diverse

selection teams

Note: (Z scores) \*

5. Discussion and conclusions

5.1. Main conclusions

There are several conclusions we can distill from this research.

Table 7. Influence of interventions and transformational leadership on affective commitment (linear regression).

Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector http://dx.doi.org/10.5772/intechopen.81003 159


Table 8. Influence of interventions and transformational leadership on departure intent (logistic regression).

Table 8 confirms that as transformational leadership increases, employees will be less inclined to leave the organization. As with commitment, the manager plays a crucial role in employee departure intention. Model 2 also shows that the influence of the "diverse selection teams" and "trajectories for the creation of an open culture" interventions disappears through the inclusion of transformational leadership.

### 5. Discussion and conclusions

There are several conclusions we can distill from this research.

#### 5.1. Main conclusions

To focus more directly on the influence of transformational leadership, multivariate analyses were performed in SPSS, with affective commitment and retention as dependent variables. Tables 7 and 8 present the results of the multivariate analysis of affective commitment and retention, respectively. In both tables, transformational leadership in the second model has been added to the analysis. To measure the interaction effect between diversity interventions and transformational leadership, interaction variables were created in the

Table 7 confirms that transformational leadership has a strong positive effect on commitment (β = 0.457, p < 0.001). This means that the more a manager uses a transformational leadership style, the higher the commitment of employees. It can also be concluded that the influence of the intervention has weakened "diverse selection teams" (β = 0.033, p < 0.005) and "trajectories for creating an open culture" (β = 0.081, p < 0.001) by the inclusion of transformational leadership. Furthermore, Model 3 shows that there is only a weak and negative interaction effect between the transformational leadership and the intervention pathways (β = 0.039, p < 0.05). This means that the effect of the diversity interventions on employee commitment is not strengthened, as was expected, but in fact, it becomes weaker as managers show more

Model 1 Model 2 Model 3

Ethnic origin 0.034\* 0.015 0.034 0.023 0.013 0.023 0.022 0.013 0.022 Gender 0.008 0.015 0.008 0.005 0.013 0.005 0.006 0.013 0.006 Preferential policy 0.028 0.021 0.024 0.030 0.019 0.026 0.029 0.019 0.025 Target figures 0.006 0.022 0.005 0.001 0.019 0.001 0.001 0.019 0.001 Specific groups 0.013 0.021 0.012 0.018 0.018 0.015 0.016 0.018 0.014 Diverse selection teams 0.081\*\*\* 0.018 0.074 0.033\* 0.016 0.030 0.038\* 0.018 0.035 Networks 0.021 0.020 0.018 0.004 0.017 0.004 0.001 0.018 0.001 Trajectories 0.178\*\*\* 0.019 0.163 0.081\*\*\* 0.017 0.074 0.090\*\*\* 0.018 0.082 Training courses 0.026 0.019 0.023 0.010 0.017 0.009 0.009 0.017 0.008 Transformational leadership 0.457\*\*\* 0.013 0.479 0.442\*\*\* 0.014 0.463

Constant 4.067\*\*\* 0.015 4.070\*\*\* 0.014 4.083\*\*\* 0.015

Table 7. Influence of interventions and transformational leadership on affective commitment (linear regression).

R<sup>2</sup> 0.219 0.512 0.513 N 4.310 4.310 4.310

Beta β Std.

Error

Beta β Std.

Error

0.007 0.015 0.007

0.039\* 0.016 0.037

Beta

β Std. Error

third model.

158 Organizational Culture

transformational leadership.

Interaction between TL and diverse

p < 0.05; \*\*p < 0.01; \*\*\*p < 0.001.

Interaction between TL and

selection teams

Note: (Z scores) \*

trajectories

First, diversity interventions based on the legitimacy and creativity perspective promote an inclusive organizational culture and are therefore more effective for the binding of employees to the organization than interventions based on a target group policy. The "creating an open culture" intervention appears to strengthen the binding of employees with the organization. This intervention focuses on differences between employees and seeks to influence the behavior of employees and, as a result, the culture within the organization. Inclusive organizational culture is thus an important condition for the commitment of employees to the organization. This confirms previous research showing that a culture with room for employee uniqueness positively influences binding [6, 10, 33, 36].

delivers new insights and innovations and brings quality and strength to organizations. But there is also a downside: diversity sometimes leads to problems and conflicts between people, even in organizations. It is not always and everywhere rosy. There is still much work to do to make diversity a standard feature of the workforce and daily life. In this chapter, some points of view are presented, along with paths and patterns that foster inclusion in organizations

Transformational Leadership and Organizational Culture: Keys to Binding Employees to the Dutch Public Sector

http://dx.doi.org/10.5772/intechopen.81003

161

One way to make diversity the most ordinary thing in organizations is to approach it from a system of values, meaning that everyone acts from deeper values such as freedom, equality, and mutual trust—the common values that are deeply rooted in society [8]. A focus on shared values can contribute to one's connection with one another, increase inclusion in organizations, and maximize talent utilization by embracing differences. More importantly, those values form the basis of organizational perspectives such as creativity, binding, and equality to stimulate diversity. When interventions are logically driven from

these perspectives and underlying values, their effectiveness is bound to improve.

In summary, this study shows that an inclusive organizational culture and a transformational leadership style play a more important role in the binding of employees than the diversity

These results also offer opportunities for further research into the interconnections among the effectiveness of interventions, a transformational leadership style, and an inclusive organizational culture. From the perspective of change management, the anchoring of diversity in the behavior and culture of people and organizations needs more attention. Diversity is not merely an issue of human resources management; it is a leadership issue and a part of the overall organizational development. Diversity is not an end in itself; the organization's ambitions are at the center, and the differences between people can contribute to realizing those ambitions. One necessary condition is a corporate culture where differences are recognized and embraced. This needs more in-depth research. In the public sector—not only in the Dutch example but also in the wider European context—diversity is not seen. If differences are seen, recognized, and given room, individuals can develop themselves more fully and can contribute more to the organization [8]. However, reality is stubborn. Think of the downside of diversity, such as conflicts that arise through differences between individuals and in the organizational context. Leadership is essential to allowing differences to flourish and increas-

The data used in the chapter based on the dissertation research [2] carried out by the author

where everyone may be different.

interventions themselves.

ing their added value contribution.

Conflict of interest

Saniye Çelik.

5.3. Limitations of the research and future studies

Second, a transformational leadership style influences the binding of employees within the organization. The role of the manager is of great importance and has a strong influence on employees' commitment and their willingness to leave the organization. The more a manager uses a transformational leadership style, the higher the affective commitment and the less employees intend to leave. This is explained by the fact that the transformational manager, directly and indirectly, influences the employee and is the interpreter of the organization's policies, including but not limited to its HRM policies. A transformational leadership style also ensures that attention is paid to individual differences. A manager with a transformational leadership style focuses on building trusting relationships with employees to motivate and inspire them. The manager takes a proactive approach to the organization's employees and tries to get the very best out of them. One requirement revealed by this research is that diversity policies must be structured so as to support managers. This is also necessary to reinforce a transformational leadership style in the organization.

Third, the effect of interventions on the binding of employees is reduced when the manager uses a transformational leadership style [14]. This indirectly affirms the previous conclusion. This research shows that managers have a key position in organizational effectiveness. The more a transformational leadership style is used, the stronger the commitment of employees to the organization, regardless of their ethnic or cultural background. Employees are already more involved in the organization and less inclined to leave it. Transformational leaders have an eye for differences in individuals that can benefit the organization. This result offers insights into the most desirable public service management qualities and contributes to the discussion about which style of management will best help the Dutch public sector manage and benefit from diversity.

Finally, this research concludes that a transformational leadership style can weaken the effect of interventions to promote the binding of employees with the organization, such as programs designed to create an open culture. This may occur because different characteristics of a transformational leader, such as responding to individual needs and promoting a better organizational climate, overlap with the theory and practice of a given diversity intervention.

#### 5.2. Implications and recommendations

In any case, the research emphasizes the importance of interventions aimed at the role of managers and their leadership style in the binding of employees within the public sector.

Diversity is a reality, but inclusion is still a choice in organizations and societies. The essence of diversity is that differences are there! No one and no organization can ignore the differences among individuals. That is why diversity should be accepted as a matter of course. Diversity delivers new insights and innovations and brings quality and strength to organizations. But there is also a downside: diversity sometimes leads to problems and conflicts between people, even in organizations. It is not always and everywhere rosy. There is still much work to do to make diversity a standard feature of the workforce and daily life. In this chapter, some points of view are presented, along with paths and patterns that foster inclusion in organizations where everyone may be different.

One way to make diversity the most ordinary thing in organizations is to approach it from a system of values, meaning that everyone acts from deeper values such as freedom, equality, and mutual trust—the common values that are deeply rooted in society [8]. A focus on shared values can contribute to one's connection with one another, increase inclusion in organizations, and maximize talent utilization by embracing differences. More importantly, those values form the basis of organizational perspectives such as creativity, binding, and equality to stimulate diversity. When interventions are logically driven from these perspectives and underlying values, their effectiveness is bound to improve.

In summary, this study shows that an inclusive organizational culture and a transformational leadership style play a more important role in the binding of employees than the diversity interventions themselves.

#### 5.3. Limitations of the research and future studies

These results also offer opportunities for further research into the interconnections among the effectiveness of interventions, a transformational leadership style, and an inclusive organizational culture. From the perspective of change management, the anchoring of diversity in the behavior and culture of people and organizations needs more attention. Diversity is not merely an issue of human resources management; it is a leadership issue and a part of the overall organizational development. Diversity is not an end in itself; the organization's ambitions are at the center, and the differences between people can contribute to realizing those ambitions. One necessary condition is a corporate culture where differences are recognized and embraced. This needs more in-depth research. In the public sector—not only in the Dutch example but also in the wider European context—diversity is not seen. If differences are seen, recognized, and given room, individuals can develop themselves more fully and can contribute more to the organization [8]. However, reality is stubborn. Think of the downside of diversity, such as conflicts that arise through differences between individuals and in the organizational context. Leadership is essential to allowing differences to flourish and increasing their added value contribution.

### Conflict of interest

behavior of employees and, as a result, the culture within the organization. Inclusive organizational culture is thus an important condition for the commitment of employees to the organization. This confirms previous research showing that a culture with room for employee

Second, a transformational leadership style influences the binding of employees within the organization. The role of the manager is of great importance and has a strong influence on employees' commitment and their willingness to leave the organization. The more a manager uses a transformational leadership style, the higher the affective commitment and the less employees intend to leave. This is explained by the fact that the transformational manager, directly and indirectly, influences the employee and is the interpreter of the organization's policies, including but not limited to its HRM policies. A transformational leadership style also ensures that attention is paid to individual differences. A manager with a transformational leadership style focuses on building trusting relationships with employees to motivate and inspire them. The manager takes a proactive approach to the organization's employees and tries to get the very best out of them. One requirement revealed by this research is that diversity policies must be structured so as to support managers. This is also necessary to reinforce a transformational leadership style

Third, the effect of interventions on the binding of employees is reduced when the manager uses a transformational leadership style [14]. This indirectly affirms the previous conclusion. This research shows that managers have a key position in organizational effectiveness. The more a transformational leadership style is used, the stronger the commitment of employees to the organization, regardless of their ethnic or cultural background. Employees are already more involved in the organization and less inclined to leave it. Transformational leaders have an eye for differences in individuals that can benefit the organization. This result offers insights into the most desirable public service management qualities and contributes to the discussion about which style of management will best help the Dutch public sector manage and benefit

Finally, this research concludes that a transformational leadership style can weaken the effect of interventions to promote the binding of employees with the organization, such as programs designed to create an open culture. This may occur because different characteristics of a transformational leader, such as responding to individual needs and promoting a better organizational climate, overlap with the theory and practice of a given diversity

In any case, the research emphasizes the importance of interventions aimed at the role of managers and their leadership style in the binding of employees within the public sector. Diversity is a reality, but inclusion is still a choice in organizations and societies. The essence of diversity is that differences are there! No one and no organization can ignore the differences among individuals. That is why diversity should be accepted as a matter of course. Diversity

uniqueness positively influences binding [6, 10, 33, 36].

in the organization.

160 Organizational Culture

from diversity.

intervention.

5.2. Implications and recommendations

The data used in the chapter based on the dissertation research [2] carried out by the author Saniye Çelik.
